Engineering Economy - Section 1 (3)

Directions to Solve

Engineering Economy - Section 1

This is the branch of engineering in which we study about
economy. There are problems available to solve in this section. You can give test and solve these
MCQs.

17.

Pick up the correct statement from the following:

A.	Ratio analysis is the procedure of determining and interpreting numerical relationship of various items of the financial statement.
B.	All financial ratios are obtained by relating two sets of information contained in a Single financial statement.
C.	The relationship between two accounting figures expressed mathematically, is known as a financial ratio.
D.	All of these

Answer: Option D

Explanation:

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18.

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

Answer: Option A

Explanation:

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19.

In a cash flow series :

A.	uniform gradient signifies that an income or disbursement changes by the same amount in each interest period.
B.	Either an increase or a decrease in the amount of a cash flow is called the gradient.
C.	The gradient in the cash flow may be positive or negative.
D.	All of these

Answer: Option D

Explanation:

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20.

If interest is paid more than once in a year, i is the rate of interest per year, n is the number of periods in years and m is a number of periods per years, compound amount factor (CAF) is :

A.
B.
C.
D.

Answer: Option A

Explanation:

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21.

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)

Answer: Option C

Explanation:

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22.

Pick up the correct statement from the following :

A.	The ratios which show profitability in relation to sales and those which show profitability in relation to investment, are called profitability ratios.
B.	The ratio of gross profit and net sales, is called profitability in relation to sales ratio.
C.	The ratio of net profit after taxes to total assests is known as profitability in relation to investment ratio
D.	All of these

Answer: Option D

Explanation:

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23.

Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

A.	Liquidity ratio
B.	Financial leverage ratio
C.	Activity ratio
D.	Portability
E.	None of these

Answer: Option E

Explanation:

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24.

Present worth Annuity (PWA) is generally known as

A.	Premium annuities
B.	Income annuities
C.	Future annuities
D.	All of these

Answer: Option D

Explanation:

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Engineering Economy - Section 1 (3)

Engineering Economy - Section 1

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