Civil Engineering - Engineering Economy MCQs Part 2
1. If a seller recovers his capital along with accumulated compensating interest not in one single lumpsum payment but in periodical equal payments, over time :
A.
Capital Recovery Annuity fs availed
Capital Recovery Annuity fs availed
B.
Present work Annuity is availed
Present work Annuity is availed
C.
Sinking Fund Annuity is availed
Sinking Fund Annuity is availed
D.
Sinking Fund Annuity is availed
Sinking Fund Annuity is availed
Answer Option A
2. Which method is adopted to develop an approximate or conceptual estimate for perimeter works for buildings from the following:
A.
Base unit method
Base unit method
B.
Cost per function method
Cost per function method
C.
Cost per square metre method
Cost per square metre method
D.
Cost per cubic metre method
Cost per cubic metre method
E.
Cost per linear metre method
Cost per linear metre method
Answer Option E
3. Pick up the correct method adopted for developing the approximate or conceptual estimates from the following :
A.
Base unit method
Base unit method
B.
Cost per function method
Cost per function method
C.
Cost per square metre
Cost per square metre
D.
Cost per linear unit
Cost per linear unit
E.
All of these
All of these
Answer Option E
4. The financial analysis :
A.
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 share holder to compare the expected return on his investment in the firm against the expected return from other alternative investment.
B.
helps a bank to know the financial position of the firm for granting a loan to the firm.
helps a bank to know the financial position of the firm for granting a loan to the firm.
C.
helps to judge the success of the firm's financial plans.
helps to judge the success of the firm's financial plans.
D.
All of these.
All of these.
Answer Option D
5. Pick up the correct statement regarding financial statement analysis from the following.
A.
Final analysis always involves the use of various financial statements i.e., balance sheet and income statement.
Final analysis always involves the use of various financial statements i.e., balance sheet and income statement.
B.
The balance sheet is the summary of assests, liabilities and owner's equity of business at a point in time.
The balance sheet is the summary of assests, liabilities and owner's equity of business at a point in time.
C.
The income statement is the summary of revenues and expenses of a firm over a particular period of time.
The income statement is the summary of revenues and expenses of a firm over a particular period of time.
D.
All the above
All the above
Answer Option D
6. The owner of the construction company makes use of the estimate :
A. to determine the capital investment costs.
B. to assist in financial arrangements
C. to determine economic feasibility of the project.
D. to determine the tax, insurance and evaluation purpose.
E. All of these
Answer Option E
7. Which one of the following is not a construction estimate ?
A. Initial feasibility estimate
B. Conceptual preliminary budget
C. Definite estimate
D. None of these
Answer Option D
8. Pick up the correct statement from the following:
A. Uniform series compound amount factor =
B. Uniform series present worth factor =
C. Sinking fund factor =
D. Capital recovery factor = where letters carry their usual meanings.
E. All of these
Answer Option E
9. Pick up the method used for project evaluation and selection in capital budgetting from the following:
A. pay back period
B. Internal ratio of return
C. Net present worth
D. Profitability index
E. All the above
Answer Option E
10. Pick up the correct statement from the following:
A. The ratio of current assests, loans and advances, and the current liquidity is called current ratio.
B. Larger the current ratio, larger is the margin of safety.
C. The operating profit is the difference between gross profit and operating expenses.
D. All of these
Answer Option D
11. A project construction cost estimate includes:
A. the labour and material cost
B. the equipment and over head cost
C. the profit of the contractor
D. All of these
Answer Option D
12. In the cash flow diagram shown in the given figure
A. The first disbursement occurs at the end of year 2
B. The second disbursement occurs at the end of year 4
C. The first receipt occurs at the end of year 1
D. The second receipt occurs at the end of year 3
E. All of these
Answer Option E
13. Pick up the correct statement from the following:
A. The receipts and disbursements in a given time interval are referred to as cash flow.
B. The assumptions that all cash flows occur at the end of the interest period, is known as the end of period convention.
C. A cash flow diagram is a graphical representation of cash flows drawn on a time scale.
D. The cash flow diagram represents the statement of the problem and also includes what is given and what is to be found.
E. All of the above.
Answer Option E
14. 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
Answer Option A
15. 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
Answer Option C
16. Pick up the correct statement from the following:
A. The capital required to get a project started is the first cost.
B. The first cost is a single cash flow or a series of cash flows that are made in the beginning of the activity's life span
C. The first cost of purchasing a car is the sum of the down payment, taxes and dealers charges.
D. All of these
Answer Option D
17. Pick up the correct statement from the following:
A. Engineering economy is a collection of mathematical techniques which simplify economic comparisons
B. Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one.
C. For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy.
D. All of these.
Answer Option D
18. Keeping in view, the feasibility order of magnitude, the preliminary, conceptual or budget estimates, are prepared by :
A. architect/engineer
B. construction manager
C. owner himself/herself
D. construction manager
E. None of these
Answer Option C
19. The construction manager uses the estimate of the project
A. to tell the owner of the project to take his/her financial decision.
B. to advise the architect/engineer regarding design cost parameter especially in value engineering analysis.
C. to develop bids on the project.
D. to control the project during its construction.
E. All of these
Answer Option E
20. If P is principal amount, i is the rate of interest per annum and n is the number of periods in years, the compound amount factor (CAF) is :
A. (1 + i)n
B. (1 + i)(1/2n)
C. (n + i)
D. None of these
Answer Option A
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
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
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
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
6. The owner of the construction company makes use of the estimate :
A. to determine the capital investment costs.
B. to assist in financial arrangements
C. to determine economic feasibility of the project.
D. to determine the tax, insurance and evaluation purpose.
E. All of these
Answer Option E
7. Which one of the following is not a construction estimate ?
A. Initial feasibility estimate
B. Conceptual preliminary budget
C. Definite estimate
D. None of these
Answer Option D
8. Pick up the correct statement from the following:
A. Uniform series compound amount factor =
B. Uniform series present worth factor =
C. Sinking fund factor =
D. Capital recovery factor = where letters carry their usual meanings.
E. All of these
Answer Option E
9. Pick up the method used for project evaluation and selection in capital budgetting from the following:
A. pay back period
B. Internal ratio of return
C. Net present worth
D. Profitability index
E. All the above
Answer Option E
10. Pick up the correct statement from the following:
A. The ratio of current assests, loans and advances, and the current liquidity is called current ratio.
B. Larger the current ratio, larger is the margin of safety.
C. The operating profit is the difference between gross profit and operating expenses.
D. All of these
Answer Option D
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