Project Management and Engineering Economics 4

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Civil Engineering MCQ. PWD, CPWD, RRB, SSC, Mock Test Paper

Subject: Project Management and Engineering Economics 4

Part 4: List for questions and answers of Project Management and Engineering Economics

Q1. The ratio obtained by dividing ‘quick assests’ by current liabilities is called?
a) Turnover ratio
b) Acid test ratio
c) Solvency ratio
d) None of these

Q2. Which one of the following definitions is correct?
a) The ratio of total debt to share holder’s equity is called ‘debt ratio’
b) The ratio debt-to-total assests is called Debt-to-total assest ratio
c) 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
d) All of these

Q3. Which one of the following is included in financial ratios of the firm?
a) Profitability ratio
b) Liquidity ratio
c) Turnover ratio
d) All of these

Q4. The estimate based on a detailed quantity survey and furnishes the most accurate and reliable estimate possible is known as?
a) Conceptual estimate
b) Definitive estimate
c) Probabilistic estimate
d) None of these

Q5. The sunk costs include?
a) A past expenditure
b) An unrecovered balance
c) An invested capital that cannot be retrieved
d) All of these

Q6. Both architect and engineer make use of the cost estimate of the project?
a) For site selection
b) For designing of the project
c) For choosing alternatives
d) All of these

Q7. 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) A + (n + 1) b
b) A + (n – 1) b
c) A x (n – 1) b
d) A – (n – 1) b

Q8. The financial analysis helps to judge?
a) The operational efficiency of the firm
b) The financial position of the firm
c) Both (a) and (b)
d) Neither (a) nor (b)

Q9. If P is principal amount, i is the rate of interest and n is the number of periods in years, then the interest factor is?
a) (1 + ni)
b) (ni – 1)
c) Ni
d) None of these

Q10. The interest calculated on the basis of 365 days a year, is known as ?
a) Interest
b) Ordinary simple interest
c) Exact simple interest
d) None of these

Q11. In a cash-flow diagram?
a) Time 0 is considered to be the present
b) Time 1 is considered to be the end of time period 1
c) An arrow pointing downward indicates a negative cash flow
d) All of these

Q12. Each financial ratio is generally compared by?
a) A past ratio calculated from the past financial standard of the firm
b) A ratio developed by using the projected financial statement of the firm
c) A ratio of some selected firms most progressive and successful at the point of
consideration
d) All of these

Q13. The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as;?
a) Present Worth Annuity
b) Sinking fund annuity
c) Compound annuity
d) Capital recovery annuity

Q14. The project contractor relies on the cost of the estimate?
a) For submission of a competitive bid for a lumpsum contract
b) For a unit price contract
c) For preparation of a definitive estimate to help negotiate contract
d) All of these

Q15. The wages of supervisors and material handlers are charged as?
a) Over head
b) Direct labour cost
c) Indirect labour cost
d) None of these

Q16. Annuities involve?
a) A series of payments
b) All payments of equal amount
c) Payment at equal time intervals
d) All of these

Q17. Pick up the method used for project evaluation and selection in capital budgeting from the following?
a) Payback period
b) Net present worth
c) Profitability index
d) All the above

Q18. The person desires to pay off the amount in 10 equal annual instalments. The amount of each instalment is?
 a) Rs 5638
b) Rs 6638
c) Rs 7738
d) None of these

Q19. Renu Bala deposits Rs 1200 now, Rs 800 two years from now and Rs 1000 five years from now. If the savings bank’s rate of interest in 5%, she will receive an amount of Rs X 10 years from now, where X is?
a) Rs 3415
b) Rs 4225
c) Rs 4413
d) Rs 4826

Q20. Earnings per share are the most important ratio for?
a) Share holders
b) Banks
c) Company’s management
d) All of these

Part 4: List for questions and answers of Project Management and Engineering Economics

Q1. Answer: b

Q2. Answer: d

Q3. Answer: d

Q4. Answer: b

Q5. Answer: d

Q6. Answer: d

Q7. Answer: b

Q8. Answer: c

Q9. Answer: a

Q10. Answer: c

Q11. Answer: d

Q12. Answer: d

Q13. Answer: d

Q14. Answer: d

Q15. Answer: a

Q16. Answer: d

Q17. Answer: d

Q18. Answer: a

Q19. Answer: c

Q20. Answer: d