Capitalized cost of any structure or property is computed by which formula?$?

First cost + interest of first cost

Annual cost ‚Äö√Ñ√¨ interest of first cost

First cost + cost of perpetual maintenance

In case of bankruptcy of a partnership,$?

The partners personal assets are attached to the debt of the partnership

The partners are not liable for the liabilities of the partnership

The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities

The partners personal assets are attached to the debt of the partnership

The partners nay sell stock to generate additional capital

The sunk costs include:$?

An invested capital that cannot be retrieved

The financial analysis:$?

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 bank to know the financial position of the firm for granting a loan to the firm

Helps to judge the success of the firm's financial plans

Pick up the correct reason for making conceptual (or preliminary) estimate from the following:$?

To have a check on a definitive cost estimate

To check quotations from contractors and/or sub-contractors

To compute target estimate for the owner while drawing and specifications are in initial stage

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:$?

Present work Annuity is availed

Capital Recovery Annuity fs availed

Present work Annuity is availed

Sinking Fund Annuity is availed

The construction estimate of a project is used by:$?

The consulting architect/engineer

Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ______ whichever is smaller.$?

50% of the fixed percentage of gross income or 50% of the net taxable income

Fixed percentage of gross income or the net taxable income

Fixed percentage of gross income or 50% of the net taxable income

50% of the fixed percentage of gross income or 50% of the net taxable income

50% of the fixed percentage of gross income or the net taxable income

The alternatives which are standalone solutions for given situations in engineering involve:$?

The anticipated life of the assets

The anticipated resalable value (salvage value) and the interest return (rate of return)

What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?$?

Rate of interest cannot be exactly determined

The initial deprecation is high

The initial depreciation is low

The key to profitable operation for project cost control, is:$?

To keep the project cost equal to original cost estimate

To keep the project cost equal to subsequent construction budget

To keep the project cost within the cost budget and knowing when and where job costs are deviating

Which one of the following questions is relevant to the construction estimates?$?

Did the estimators precisely evaluate site conditions

Did the estimators use short cut methods which may be unrealistic in their situation

How much money will the contractor's risk, loosing if he were to submit bid on the raw estimate of cost

A project construction cost estimate includes:?

The equipment and over head cost

Return on investment ratio is the ratio of the:?

Market price per share to earnings per share

Net income to owner‚Äö√Ñ√¥s equity

Market price per share to earnings per share

Cost of goods sold to average cost of inventory at hand

Net credit sales to average net receivable

Which one of the following questions is relevant to the construction estimates??

Did the estimators precisely evaluate site conditions

Did the estimators use short cut methods which may be unrealistic in their situation

How much money will the contractor's risk, loosing if he were to submit bid on the raw estimate of cost

431 + Mcqs in Engineering Economics in Civil Engineering Page 7 McqOptions

301.	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.	P 142,999.08
B.	P 143,104.89
C.	P 142,189.67
D.	P 143,999.08
Answer» E.

Discussion

302.	If ‚Äö√Ñ√≤a‚Äö√Ñ√¥ is the base amount expenditure, ‚Äö√Ñ√≤b‚Äö√Ñ√¥ is the increase in the operation cost each year over a period of‚Äö√Ñ√¥ 'n‚Äö√Ñ√¥ years, the total cost of maintenance is:$?
A.	a + (n + 1) b
B.	a + (n - 1) b
C.	a ‚àö√≥ (n - 1) b
D.	a - (n - 1) b
Answer» C. a ‚àö√≥ (n - 1) b

Discussion

303.	What is the simplest form of business organization?$?
A.	Sole proprietorship
B.	Partnership
C.	Enterprise
D.	Corporation
Answer» B. Partnership

Discussion

304.	Capitalized cost of any structure or property is computed by which formula?$?
A.	First cost + interest of first cost
B.	Annual cost ‚Äö√Ñ√¨ interest of first cost
C.	First cost + cost of perpetual maintenance
D.	First cost + salvage value
Answer» D. First cost + salvage value

Discussion

305.	In case of bankruptcy of a partnership,$?
A.	The partners are not liable for the liabilities of the partnership
B.	The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities
C.	The partners personal assets are attached to the debt of the partnership
D.	The partners nay sell stock to generate additional capital
Answer» C. The partners personal assets are attached to the debt of the partnership

Discussion

306.	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
Answer» E.

Discussion

307.	The sunk costs include:$?
A.	A past expenditure
B.	An unrecovered balance
C.	An invested capital that cannot be retrieved
D.	All of these
Answer» E.

Discussion

308.	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
B.	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
D.	All of these
Answer» E.

Discussion

309.	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.	P 6,999.39
B.	P 6,292.93
C.	P 6,222.39
D.	P 6,922.93
Answer» E.

Discussion

310.	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.	11.23 years
B.	11.46 years
C.	11.57 years
D.	11.87 years
Answer» D. 11.87 years

Discussion

311.	What is defined as any tangible economic activity that contributes directly or indirectly to the satisfaction of human want?$?
A.	Services
B.	Goods
C.	Commodities
D.	Goods or commodities
Answer» B. Goods

Discussion

312.	Pick up the correct reason for making conceptual (or preliminary) estimate from the following:$?
A.	To have a check on a definitive cost estimate
B.	To check quotations from contractors and/or sub-contractors
C.	To compute target estimate for the owner while drawing and specifications are in initial stage
D.	All of these
Answer» E.

Discussion

313.	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.	Capital Recovery Annuity fs availed
B.	Present work Annuity is availed
C.	Sinking Fund Annuity is availed
D.	Sinking Fund Annuity is availed
Answer» B. Present work Annuity is availed

Discussion

314.	Pick up the element of the cost from the following:$?
A.	Direct material
B.	Direct labour
C.	Over head
D.	All of these
Answer» E.

Discussion

315.	The construction estimate of a project is used by:$?
A.	The owner of the facility
B.	The consulting architect/engineer
C.	The contractor of the project
D.	All of these
Answer» E.

Discussion

316.	Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ______ whichever is smaller.$?
A.	Fixed percentage of gross income or the net taxable income
B.	Fixed percentage of gross income or 50% of the net taxable income
C.	50% of the fixed percentage of gross income or 50% of the net taxable income
D.	50% of the fixed percentage of gross income or the net taxable income
Answer» C. 50% of the fixed percentage of gross income or 50% of the net taxable income

Discussion

317.	What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund?$?
A.	T-bills
B.	Securities
C.	Bond
D.	Bank notes
Answer» D. Bank notes

Discussion

318.	The alternatives which are standalone solutions for given situations in engineering involve:$?
A.	A purchase cost (first cost)
B.	The anticipated life of the assets
C.	The anticipated resalable value (salvage value) and the interest return (rate of return)
D.	All of these
Answer» E.

Discussion

319.	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%

Discussion

320.	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

Discussion

321.	What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?$?
A.	Unstable economy
B.	Rate of interest cannot be exactly determined
C.	The initial deprecation is high
D.	The initial depreciation is low
Answer» E.

Discussion

322.	If ‚Äö√Ñ√≤P‚Äö√Ñ√¥ is principal amount, ‚Äö√Ñ√≤I‚Äö√Ñ√¥ is the rate of interest per annum and ‚Äö√Ñ√≤n‚Äö√Ñ√¥ is the number of periods in years, the compound amount factor (CAF) is:$?
A.	(1 + i)n
B.	(1 + i)(1/2n)
C.	‚Äö√ √∂(n + i)
D.	None of these
Answer» B. (1 + i)(1/2n)

Discussion

323.	The key to profitable operation for project cost control, is:$?
A.	To keep the project cost equal to original cost estimate
B.	To keep the project cost equal to subsequent construction budget
C.	To keep the project cost within the cost budget and knowing when and where job costs are deviating
D.	None of these
Answer» D. None of these

Discussion

324.	What refers to the residual value of a company‚Äö√Ñ√¥s assets after all outside liabilities (shareholders excluded) have been allowed for?$?
A.	Dividend
B.	Equity
C.	Return
D.	Par value
Answer» C. Return

Discussion

325.	The product of CAF (S P) and PWF (S P) is:$?
A.	1/2
B.	1
C.	1/3
D.	1/4
Answer» C. 1/3

Discussion

326.	In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes?$?
A.	Straight line method
B.	Sinking fund method
C.	Sum-of-year digit method
D.	Declining balance method
Answer» C. Sum-of-year digit method

Discussion

327.	The ability to convert assets to cash quickly is known as ______.$?
A.	Solvency
B.	Liquidity
C.	Leverage
D.	Insolvency
Answer» C. Leverage

Discussion

328.	The declining balance method is also known as ______.$?
A.	Double percentage method
B.	Constant percentage method
C.	Modified sinking fund method
D.	Modified SYD method
Answer» C. Modified sinking fund method

Discussion

329.	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

Discussion

330.	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

Discussion

331.	What is the type of annuity that does not have a fixed time span but continues indefinitely or forever?$?
A.	Ordinary annuity
B.	Perpetuity
C.	Annuity due
D.	Deferred annuity
Answer» C. Annuity due

Discussion

332.	The difference between the present and future worth of money at some time in the future is called ______.$?
A.	Discount
B.	Deduction
C.	Inflation
D.	Depletion
Answer» B. Deduction

Discussion

333.	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.	Annuity
B.	Amortization
C.	Capital recovery
D.	Annuity factor
Answer» C. Capital recovery

Discussion

334.	Aggregation of individuals formed for the purpose of conducting a business and recognized by law as a fictitious person is called ______.$?
A.	Partnership
B.	Investors
C.	Corporation
D.	Stockholders
Answer» D. Stockholders

Discussion

335.	A bond without any security behind them except a promise to pay by the issuing corporation is called ______.$?
A.	Joint bond
B.	Debenture bond
C.	Trust bond
D.	Common bond
Answer» C. Trust bond

Discussion

336.	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.

Discussion

337.	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.

Discussion

338.	What refers to an imaginary cost representing what will not be received if a particular strategy is rejected??
A.	Opportunity cost
B.	Ghost cost
C.	Horizon cost
D.	Null cost
Answer» B. Ghost cost

Discussion

339.	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» E.

Discussion

340.	Return on investment ratio is the ratio of the:?
A.	Net income to owner‚Äö√Ñ√¥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

Discussion

341.	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.	1,033
B.	1,037
C.	1,043
D.	1,053
Answer» E.

Discussion

342.	Which of these gives the lowest effective rate of interest??
A.	12.35 % compounded annually
B.	11.90 % compounded annually
C.	12.20 % compounded annually
D.	11.60 % compounded annually
Answer» E.

Discussion

343.	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
Answer» C. Probabilistic estimate

Discussion

344.	What market situation exists where there are few sellers and few buyers??
A.	Oligopoly
B.	Oligopsony
C.	Bilateral oligopoly
D.	Bilateral Oligopsony
Answer» D. Bilateral Oligopsony

Discussion

345.	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.

Discussion

346.	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.

Discussion

347.	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

Discussion

348.	What is a measure of the average speed with which accounts receivable are collected?
A.	Current ratio
B.	Quick ratio
C.	Acid test ratio
D.	Receivable turnover
Answer» E.

Discussion

349.	What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with interest at 8% compounded annually?
A.	P 7,654.04
B.	P 7,731.29
C.	P 7,420.89
D.	P 7,590.12
Answer» C. P 7,420.89

Discussion

350.	A form of business organization in which a person conducts his business alone and entirely for his own profit, being solely responsible for all its activities and liabilities.
A.	Sole proprietorship
B.	Entrepreneurship
C.	Partnership
D.	Corporation
Answer» B. Entrepreneurship

Discussion

Explore topic-wise MCQs in Civil Engineering.

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?$?

If ‚Äö√Ñ√≤a‚Äö√Ñ√¥ is the base amount expenditure, ‚Äö√Ñ√≤b‚Äö√Ñ√¥ is the increase in the operation cost each year over a period of‚Äö√Ñ√¥ 'n‚Äö√Ñ√¥ years, the total cost of maintenance is:$?

What is the simplest form of business organization?$?

Capitalized cost of any structure or property is computed by which formula?$?

In case of bankruptcy of a partnership,$?

The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as;$?

The sunk costs include:$?

The financial analysis:$?

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?$?

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?$?

What is defined as any tangible economic activity that contributes directly or indirectly to the satisfaction of human want?$?

Pick up the correct reason for making conceptual (or preliminary) estimate from the following:$?

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:$?

Pick up the element of the cost from the following:$?

The construction estimate of a project is used by:$?

Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ______ whichever is smaller.$?

What is defined as a financial security note issued by business or corporation and by the government as a means of borrowing long-term fund?$?

The alternatives which are standalone solutions for given situations in engineering involve:$?

A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment?$?

What bond whose security is a mortgage on certain specified assets of the corporation?$?

What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?$?

If ‚Äö√Ñ√≤P‚Äö√Ñ√¥ is principal amount, ‚Äö√Ñ√≤I‚Äö√Ñ√¥ is the rate of interest per annum and ‚Äö√Ñ√≤n‚Äö√Ñ√¥ is the number of periods in years, the compound amount factor (CAF) is:$?

The key to profitable operation for project cost control, is:$?

What refers to the residual value of a company‚Äö√Ñ√¥s assets after all outside liabilities (shareholders excluded) have been allowed for?$?

The product of CAF (S P) and PWF (S P) is:$?

In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes?$?

The ability to convert assets to cash quickly is known as ______.$?

The declining balance method is also known as ______.$?

What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?$?

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?$?

What is the type of annuity that does not have a fixed time span but continues indefinitely or forever?$?

The difference between the present and future worth of money at some time in the future is called ______.$?

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 ______.$?

Aggregation of individuals formed for the purpose of conducting a business and recognized by law as a fictitious person is called ______.$?

A bond without any security behind them except a promise to pay by the issuing corporation is called ______.$?

The financial health of the company is measured in terms of:$?

Which one of the following questions is relevant to the construction estimates?$?

What refers to an imaginary cost representing what will not be received if a particular strategy is rejected??

A project construction cost estimate includes:?

Return on investment ratio is the ratio of the:?

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?

Which of these gives the lowest effective rate of interest??

The estimate based on a detailed quantity survey and furnishes the most accurate and reliable estimate possible is known as?

What market situation exists where there are few sellers and few buyers??

Which one of the following questions is relevant to the construction estimates??

The financial health of the company is measured in terms of:?

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.?

What is a measure of the average speed with which accounts receivable are collected?

What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with interest at 8% compounded annually?

A form of business organization in which a person conducts his business alone and entirely for his own profit, being solely responsible for all its activities and liabilities.