Civil Engineering - Engineering Economy

Exercise :: Engineering Economy - Section 2

21. 

Liquidity ratios are used :

A. to measure a firms ability to meet short-cut obligations.
B. to compare short term obligations to short-term resources available to meet these obligations.
C. to obtain much insight into the present cash solvency of the firm and the firm's ability to remain solvent in the event of adversity.
D. All of these

Answer: Option D

Explanation:

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22. 

Earning per share is the most important ratio for

A. share holders
B. banks
C. company's management
D. All of these

Answer: Option D

Explanation:

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23. 

Pick up the correct statement from the following:

A. The difference between sales revenue and cost of goods sold, is known as 'Gross Profit.'
B. The gross profit percentage is the average profit margin obtained on goods sold.
C. The relationship of contribution to sales is known as contribution ratio
D. The difference between sales and variable cost of sales, is called contribution.
E. All of these

Answer: Option E

Explanation:

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24. 

Pick up the main purpose of project cost control from the following :

A. To signal immediate warning of uneconomic operations
B. To provide a feed back to the estimator
C. To promote cost consciousness
D. All of these

Answer: Option D

Explanation:

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