MCQOPTIONS
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MCQOPTIONS
This section includes 431 Mcqs, each offering curated multiple-choice questions to sharpen your Civil Engineering knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
What refers to an imaginary cost representing what will not be received if a particular strategy is rejected? |
| A. | pportunity cost |
| B. | host cost |
| C. | orizon cost |
| D. | ull cost |
| Answer» B. host cost | |
| 2. |
Engr. Trinidad loans from a loan firm an amount of P100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, she has to pay the full amount of P100,000, what is the actual rate of interest? |
| A. | 3.5 % |
| B. | 4.7 % |
| C. | 5.0 % |
| D. | 5.8 % |
| Answer» D. 5.8 % | |
| 3. |
A manufacturer produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 2.32 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000 |
| A. | ,033 |
| B. | ,037 |
| C. | ,043 |
| D. | ,053 |
| Answer» E. | |
| 4. |
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion. |
| A. | 5,000,000.00 |
| B. | 5,010,000.00 |
| C. | 5,025,000.00 |
| D. | 5,050,000.00 |
| Answer» B. 5,010,000.00 | |
| 5. |
It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of P80,000 one year after, what then will be the effective interest rate? |
| A. | 6.02 % |
| B. | 6.28 % |
| C. | 6.32 % |
| D. | 6.47 % |
| Answer» C. 6.32 % | |
| 6. |
What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn? |
| A. | resent worth factor |
| B. | nterest rate |
| C. | ime value of money |
| D. | ield |
| Answer» D. ield | |
| 7. |
A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year? |
| A. | 693.12 |
| B. | 700.12 |
| C. | 702.15 |
| D. | 705.42 |
| Answer» E. | |
| 8. |
What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest? |
| A. | ffective rate of interest |
| B. | ominal rate of interest |
| C. | ompound interest |
| D. | imple interest |
| Answer» D. imple interest | |
| 9. |
If a seller recovers his capital along with accumulated compensating interest not in one single lump-sum payment but in periodical equal payments, over time: |
| A. | apital Recovery Annuity fs availed |
| B. | resent work Annuity is availed |
| C. | inking Fund Annuity is availed |
| D. | inking Fund Annuity is availed |
| Answer» B. resent work Annuity is availed | |
| 10. |
A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan? |
| A. | 6,999.39 |
| B. | 6,292.93 |
| C. | 6,222.39 |
| D. | 6,922.93 |
| Answer» E. | |
| 11. |
By the condition of a will, the sum of P20,000 is left to a girl to be held in trust fund by her guardian until it amounts to P50,000. When will the girl receive the money if fund invested at 8% compounded quarterly? |
| A. | 1.23 years |
| B. | 1.46 years |
| C. | 1.57 years |
| D. | 1.87 years |
| Answer» D. 1.87 years | |
| 12. |
What is defines as the analysis and evaluation of the monetary consequences by using the theories and principles of economics to engineering applications, designs and projects? |
| A. | conomic Analysis |
| B. | ngineering cost analysis |
| C. | ngineering economy |
| D. | esign cost analysis |
| Answer» B. ngineering cost analysis | |
| 13. |
A ______ is a market situation where economies of scale are so significant that cost are only minimized when the entire output of an industry is supplied by a single producer so that the supply costs are lower under monopoly that under perfect competition. |
| A. | erfect monopoly |
| B. | ilateral monopoly |
| C. | atural monopoly |
| D. | rdinary monopoly |
| Answer» D. rdinary monopoly | |
| 14. |
Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note. |
| A. | 18,000 |
| B. | 18,900 |
| C. | 19,000 |
| D. | 19,100 |
| Answer» B. 18,900 | |
| 15. |
A person buys a piece of lot for P 100,000 downpayment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually? |
| A. | 142,999.08 |
| B. | 143,104.89 |
| C. | 142,189.67 |
| D. | 143,999.08 |
| Answer» E. | |
| 16. |
As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ______. |
| A. | nnuity |
| B. | mortization |
| C. | apital recovery |
| D. | nnuity factor |
| Answer» C. apital recovery | |
| 17. |
A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment? |
| A. | 2,500.57 |
| B. | 2,544.45 |
| C. | 2,540.56 |
| D. | 2,504.57 |
| Answer» E. | |
| 18. |
What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties? |
| A. | ook value |
| B. | arket value |
| C. | air value |
| D. | ranchise value |
| Answer» D. ranchise value | |
| 19. |
A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified? |
| A. | 2.07 % |
| B. | 2.34 % |
| C. | 2.67 % |
| D. | 2.87 % |
| Answer» B. 2.34 % | |
| 20. |
Miss Calledo deposited P 1,000, P 1,500 and P 2,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 10% per annum. How much is in the account at the end of the 4th year? |
| A. | 4,880.00 |
| B. | 4,820.00 |
| C. | 4,860.00 |
| D. | 4,840.00 |
| Answer» D. 4,840.00 | |
| 21. |
The profit derived from a project or business enterprise without consideration of obligations to financial contributors and claims of others based on profit is known as ______. |
| A. | ield |
| B. | conomic return |
| C. | arning value |
| D. | ain |
| Answer» C. arning value | |
| 22. |
In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes? |
| A. | traight line method |
| B. | inking fund method |
| C. | um-of-year digit method |
| D. | eclining balance method |
| Answer» C. um-of-year digit method | |
| 23. |
A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments. |
| A. | 43,600.10 |
| B. | 43,489.47 |
| C. | 43,263.91 |
| D. | 43,763.20 |
| Answer» E. | |
| 24. |
A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment? |
| A. | 3.0% |
| B. | 3.4% |
| C. | 3.7% |
| D. | 4.0% |
| Answer» B. 3.4% | |
| 25. |
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. | All of these |
| Answer» E. | |
| 26. |
In the cash-flow diagram shown in the given figure |
| A. | Equal deposits of Rs 3000 per year |
| B. | The rate of interest is 10% per year account |
| C. | The amount accumulated after the seventh deposit is to be computed |
| D. | All of these |
| Answer» E. | |
| 27. |
What bond whose security is a mortgage on certain specified assets of the corporation? |
| A. | Registered bond |
| B. | Collateral trust bond |
| C. | Mortgage bond |
| D. | Debenture bond |
| Answer» D. Debenture bond | |
| 28. |
Liquidity ratios are used: |
| A. | To measure a firm’s 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 |
| D. | All of these |
| Answer» E. | |
| 29. |
What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results? |
| A. | Functional depreciation |
| B. | Design depreciation |
| C. | Physical depreciation |
| D. | Demand depreciation |
| Answer» D. Demand depreciation | |
| 30. |
What is defined as the reduction or fall of the value of an asset due to constant use and passage of time? |
| A. | Depletion |
| B. | Inflation |
| C. | Depreciation |
| D. | Deflation |
| Answer» D. Deflation | |
| 31. |
The project contractor relies on the cost of the estimate: |
| A. | For submission of a competitive bid for a lump-sum contract |
| B. | For a unit price contract |
| C. | For preparation of a definitive estimate to help negotiate contract |
| D. | All of these |
| Answer» E. | |
| 32. |
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 |
| Answer» D. Withheld stock | |
| 33. |
Using factor method, the depletion at any given year is equal to: |
| A. | Initial cost of property times number of unit sold during the year divided by the total units in property |
| B. | Initial cost of property divided by the number of units sold during the year |
| C. | Initial cost of property times number of units sold during the year |
| D. | Initial cost of property divided by the total units in property |
| Answer» B. Initial cost of property divided by the number of units sold during the year | |
| 34. |
What refers to the need, want or desire for a product backed by the money to purchase it? |
| A. | Supply |
| B. | Demand |
| C. | Product |
| D. | Good |
| Answer» C. Product | |
| 35. |
Perfect monopoly exists only if: |
| A. | the single vendor can prevent the entry of all other vendors in the market |
| B. | the single vendor gets the absolute franchise of the product |
| C. | the single vendor is the only one who has the permit to sell |
| D. | the single vendor is the only one who has the knowledge of the product |
| Answer» B. the single vendor gets the absolute franchise of the product | |
| 36. |
What is normally used to compare alternatives that accomplish the same purpose but have unequal lives? |
| A. | Capitalized cost method |
| B. | Present worth method |
| C. | Annual cost method |
| D. | MARR |
| Answer» D. MARR | |
| 37. |
A loan for P50,000 is to be paid in 3 years at the amount of P65,000. What is the effective rate of money? |
| A. | 9.01 % |
| B. | 9.14 % |
| C. | 9.31 % |
| D. | 9.41 % |
| Answer» C. 9.31 % | |
| 38. |
The financial health of the company is measured in terms of: |
| A. | Liquidity |
| B. | Solvency |
| C. | Relative risk |
| D. | All of the above |
| Answer» E. | |
| 39. |
What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.? |
| A. | Utility |
| B. | Necessity |
| C. | Commodity |
| D. | Stock |
| Answer» D. Stock | |
| 40. |
In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset? |
| A. | Straight line method |
| B. | Sinking fund method |
| C. | Sum-of-year digit method |
| D. | Declining balance method |
| Answer» B. Sinking fund method | |
| 41. |
Which one of the following questions is relevant to the construction estimates? |
| A. | Did the estimators precisely evaluate site conditions |
| B. | Did the estimators use short cut methods which may be unrealistic in their situation |
| C. | How much money will the contractor's risk, loosing if he were to submit bid on the raw estimate of cost |
| D. | All of these |
| Answer» E. | |
| 42. |
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 |
| Answer» E. | |
| 43. |
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 assets is called Debt-to-total assets 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 |
| Answer» E. | |
| 44. |
What is considered as the standard unit which forms the basis of a country’s domestic money supply? |
| A. | Monetary unit |
| B. | Currency |
| C. | Foreign exchange |
| D. | Cash or check |
| Answer» D. Cash or check | |
| 45. |
Return on investment ratio is the ratio of the: |
| A. | Net income to owner’s equity |
| B. | Market price per share to earnings per share |
| C. | Cost of goods sold to average cost of inventory at hand |
| D. | Net credit sales to average net receivable |
| Answer» B. Market price per share to earnings per share | |
| 46. |
What is the type of annuity where the payments are made at the beginning of the each period starting from the first period? |
| A. | Ordinary annuity |
| B. | Perpetuity |
| C. | Annuity due |
| D. | Deferred annuity |
| Answer» D. Deferred annuity | |
| 47. |
What is the type of annuity where the payments are made at the end of each period starting from the first period? |
| A. | Ordinary annuity |
| B. | Perpetuity |
| C. | Annuity due |
| D. | Deferred annuity |
| Answer» B. Perpetuity | |
| 48. |
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» B. (ni - 1) | |
| 49. |
The depletion allowance method of computing depletion is commonly known as ______. |
| A. | Unit method |
| B. | Percentage method |
| C. | Factor method |
| D. | Sinking fund method |
| Answer» C. Factor method | |
| 50. |
The ability to convert assets to cash quickly is known as ______. |
| A. | Solvency |
| B. | Liquidity |
| C. | Leverage |
| D. | Insolvency |
| Answer» C. Leverage | |