Engineering Economy Mcqs
Q.1: What is defined as the current assets minus inventories and prepaid expenses ?N
A. Profit margin ratio
B. Price-earnings ratio
C. Return of investment ratio
D. Quick ratio
Q.2: The common ratio is the ratio of_______________?0
A. Net credit sales to average net receivable*
B. Current assets to current liabilities%
C. Gross profit to net sales
D. Net income to owners equity
Q.3: What is an index of short-term paying ability ?/
A. Price-earnings ratio
B. Current ratio
C. Profit margin ratio
D. Gross margin
Q.4: The financial health of the company is measured in terms of______________?J
A. Liquidity
B. Solvency
C. Relative risk
D. All of the above
Q.5: What is the basic accounting equation ?'
A. Assets = liability + owners equity%
B. Liability = assets + owners equity%
C. Owners equity = assets + liability%
D. Owners equity = liability assets'
Q.6: The ability to convert assets to cash quickly is known as ________________?K
A. Solvency
B. Liquidity
C. Leverage
D. Insolvency
Q.7: The ability to meet debts as they become due is known as __________________?L
A. Solvency
B. Leverage
C. Insolvency
D. Liquidity
Q.8: What is a stock of a product which is held by a trade body or government as a means of regulating the price of that product ?}
A. Stock pile
B. Hoard stock
C. Buffer stock
D. Withheld stock
Q.9: A form of business firm which is owned and run by a group of individuals for their mutual benefit is called ___________________?
A. Cooperative
B. Corporation
C. Enterprise
D. Partnership
Q.10: What is a government bond which has an indefinite life rather than a specific maturity ?X
A. Coupon
B. T-bill
C. Debenture
D. Consol

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