Online Civil Engineering Test - Engineering Economy Test

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Total number of questions: 20.
Time allotted: 30 minutes.
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The interest calculated on the basis of 365 days a year, is known as :

interest

ordinary simple interest

exact simple interest

None of these

[#]

The capital Recovery Factor (equal payments) of Capital Recovery Annuity is :

None of these.

[#]

Pick up the correct statement from the following:

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.

The manifestation of the time value of money is termed as interest.

Interest on borrowing = present amount owed - original loan

The original investment (or loan) is referred to as principal.

All of these.

[#]

In the cash-flow diagram shown in the given figure

Equal deposits of Rs 3000 per year (A) are made, starting now.

The rate of interest is 10% per yearaccount

The amount accumulated after the seventh deposit is to be computed

All of these

[#]

Pick up the element of the cost from the following:

direct material

direct labour

Over head

All of these

[#]

In a cash flow series :

uniform gradient signifies that an income or disbursement changes by the same amount in each interest period.

Either an increase or a decrease in the amount of a cash flow is called the gradient.

The gradient in the cash flow may be positive or negative.

All of these

[#]

If a is the base amount expenditure, b is the increase in the operation cost each year over a period of n years, the total cost of maintenance is :

a + (n + 1) b

a + (n - 1) b

a x (n - 1) b

a - (n - 1) b

[#]

The ratio obtained by dividing 'quick assests' by current liabilities is called

Turnover ratio

Acid test ratio

Solvency ratio

None of these.

[#]

Pick up the correct reason for making conceptual (or preliminary) estimate from the following:

To have a check on a definitive cost estimate.

To check qoutations from contractors and/or sub contractors.

To compute target estimate for the owner while drawings and specifications are in initial stage.

All of these.

[#]

10.

The estimate based on a detailed quantity survey and furnishes the most accurate and reliable estimate possible is known as

Conceptual estimate

Definitive estimate

Probabilistic estimate

None of these

[#]

11.

Current assests less inventories divided by current liabilities is known as

Liquidity ratio

Current ratio

Acid-Test (or Quick) ratio

Debts ratio

[#]

12.

Which one of the following definitions, is correct ?

The ratio of total debt to share holder's equity is called 'debt ratio'.

The ratio debt-to-total assests is called Debt-to-total assest ratio.

The ratio of earnings before interest and taxes for a particular reporting period to the amount of interest charges for the period, is called interest coverage ratio.

All of these

[#]

13.

Pick up the correct statement from the following:

A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed.

In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project.

As the discount rate increases, the net present value profile slopes downward to the right.

All of these

[#]

14.

If a seller recovers his capital along with accumulated compensating interest not in one single lumpsum payment but in periodical equal payments, over time :

Capital Recovery Annuity fs availed

Present work Annuity is availed

Sinking Fund Annuity is availed

[#]

15.

In the cash flow diagram shown in the given figure

The first disbursement occurs at the end of year 2

The second disbursement occurs at the end of year 4

The first receipt occurs at the end of year 1

The second receipt occurs at the end of year 3

All of these

[#]

16.

The financial analysis :

helps a share holder to compare the expected return on his investment in the firm against the expected return from other alternative investment.

helps a bank to know the financial position of the firm for granting a loan to the firm.

helps to judge the success of the firm's financial plans.

All of these.

[#]

17.

Pick up the correct statement from the following:

The difference between sales revenue and cost of goods sold, is known as 'Gross Profit.'

The gross profit percentage is the average profit margin obtained on goods sold.

The relationship of contribution to sales is known as contribution ratio

The difference between sales and variable cost of sales, is called contribution.

All of these

[#]

18.

The construction manager uses the estimate of the project

to tell the owner of the project to take his/her financial decision.

to advise the architect/engineer regarding design cost parameter especially in value engineering analysis.

to develop bids on the project.

to control the project during its construction.

All of these

[#]

19.

Liquidity ratios are used :

to measure a firms ability to meet short-cut obligations.

to compare short term obligations to short-term resources available to meet these obligations.

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.

All of these

[#]

20.

Pick up the correct statement regarding financial statement analysis from the following.

Final analysis always involves the use of various financial statements i.e., balance sheet and income statement.

The balance sheet is the summary of assests, liabilities and owner's equity of business at a point in time.

The income statement is the summary of revenues and expenses of a firm over a particular period of time.

All the above

[#]

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Online Civil Engineering Test - Engineering Economy Test

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