Engineering Economics 9

Objective Questions and Answers of Civil Engineering: Engineering Economics 9

Subject: Engineering Economics 9

Part 9: Objective questions and answers of Engineering Economics


Q1. What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community?

a) Annual cost method

b) Benefit-cost ratio

c) Rate of return method



Q2. What is the factor name of the formula [i(1+i)^n]/[((1+i)^n)-1]?

a) Uniform series sinking fund

b) Capital recovery

c) Single payment present worth

d) Uniform gradient future worth


Q3. Is an artificial being created by operation of law, having the right of succession and the process, attributes and properties expressly authorized by the law or incident to its existence.

a) Corporation

b) Property

c) Partnership

d) Organization


Q4. What is the simplest form of business organization?

a) Sole proprietorship

b) Partnership

c) Enterprise

d) Corporation


Q5. In case of bankruptcy of a partnership,

a) The partners are not liable for the liabilities of the partnership

b) The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities

c) The partners personal assets are attached to the debt of the partnership

d) The partners nay sell stock to generate additional capital


Q6. Which is true about corporation?

a) It is worse type of business organization.

b) The minimum number of incorporators to start a corporation is three.

c) Its life is dependent on the lives of the incorporators.

d) The stock holders of the corporation are only liable to the extent of their investments.


Q7. An association of two or more persons for the purpose of engaging into a business for profit is called ______.

a) Entrepreneurship

b) Partnership

c) Proprietorship

d) Corporation


Q8. What stock represents ownership and enjoys certain preferences than ordinary stock?

a) Authorized stock

b) Preferred stock

c) Incorporator’s stock

d) Presidential stock


Q9. What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been allowed for?

a) Dividend

b) Equity

c) Return

d) Par value


Q10. What represents the share of participation in business organizations?

a) Franchise

b) Partnership

c) Stock

d) Corporation


Q11. ______ is the element of value which a business has earned through the favorable consideration and patronage of its costumers arising from its well-known and well conducted policies and operations.

a) Status company

b) Big income

c) Known owners

d) Goodwill


Q12. Lands, buildings, plants and machineries are example of what type of asset?

a) Current asset

b) Trade investment asset

c) Fixed asset

d) Intangible asset


Q13. What is another term for “current assets”?

a) Fixed assets

b) Non-liquid assets

c) Liquid assets

d) Cash


Q14. What is the change in cost per unit variable change called?

a) Variable cost

b) Incremental cost

c) Fixed cost

d) Supplemental cost


Q15. What is a secondary book of accounts, the information of which is obtained from the journal is called?

a) Balanced sheet

b) Ledger

c) Worksheet

d) Trial balance


Q16. All the proceeds which are received by the business as a result of the sale of goods is called ______.

a) Net income

b) Gross income

c) Net revenue

d) Total sales


Q17. What is a measure of the average speed with which accounts receivable are collected? 

a) Current ratio

b) Quick ratio

c) Acid test ratio

d) Receivable turnover


Q18. What do you call a one-time credit against taxes?

a) Due credit

b) Tax credit

c) Credible credit

d) Revenue credit


Q19. What is the increase in the money value of a capital asset is called?

a) Profit

b) Capital gain

c) Capital expenditure

d) Capital stock


Q20. What refers to the negotiable claim issued by a bank in lien of a term deposit?

a) Time deposit

b) Bond

c) Capital gain certificate

d) Certificate of deposit


Part 9: Objective questions and answers of Engineering Economics


Q1. Answer b


Q2. Answer b


Q3. Answer a


Q4. Answer a


Q5. Answer b


Q6. Answer d


Q7. Answer b


Q8. Answer b


Q9. Answer b


Q10. Answer c


Q11. Answer d


Q12. Answer c


Q13. Answer c


Q14. Answer b


Q15. Answer b


Q16. Answer b


Q17. Answer d


Q18. Answer b


Q19. Answer b


Q20. Answer d