Civil Engineering - Engineering Economy
Exercise :: Engineering Economy - Section 1
| 6. |
Pick up the correct statement from the following: |
| A. |
The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy. | | B. |
The manifestation of the time value of money is termed as interest. | | C. |
Interest on borrowing = present amount owed - original loan | | D. |
The original investment (or loan) is referred to as principal. | | E. |
All of these. |
Answer: Option E
Explanation:
|
| 7. |
Which one of the following is included in financial ratios of the firm ? |
| A. |
Profitability ratio | | B. |
Liquidity ratio | | C. |
Turnover ratio | | D. |
Ratio of overall performances | | E. |
All of these |
Answer: Option E
Explanation:
|
| 8. |
Pick up the correct statement from the following: |
| A. |
The financial ratio summarises some aspect of the firm's financial condition at the time of preparing a balance sheet. | | B. |
Both the numerator and denominator of financial ratios come directly from the balance sheet. | | C. |
Income statement ratios compare one 'flow' item from the income statement to another flow item from the income statement. | | D. |
Income statement ratios compare a flow item from the income statement to another flow item form the income statement | | E. |
All of these |
Answer: Option E
Explanation:
|
| 9. |
Refer to the cash flow diagram of uniform gradient in a cash flow (in the given figure), the gradient is :
 |
| A. |
Rs 10000 per year | | B. |
Rs 15000 per year | | C. |
Rs 20000 per year | | D. |
Rs 25000 per year |
Answer: Option D
Explanation:
|
| 10. |
In the cash-flow diagram shown in the given figure
 |
| A. |
Equal deposits of Rs 3000 per year (A) are made, starting now. | | B. |
The rate of interest is 10% per yearaccount | | C. |
The amount accumulated after the seventh deposit is to be computed | | D. |
All of these |
Answer: Option D
Explanation:
|
