Engineering Economics - Practice Test

[#76] 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) None of these

Correct Answer

(D) None of these

[#77] A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?

(A) P 3,260.34

(B) P 3,280.34

(C) P 3,270.34

(D) P 3,250.34

Correct Answer

(A) P 3,260.34

[#78] 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

Correct Answer

(A) Net income to owner’s equity

[#79] 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

Correct Answer

(C) Foreign exchange

[#80] 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

Correct Answer

(D) All of these

Engineering Economics - Study Mode

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

Correct Answer

[#77] A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?

Correct Answer

[#78] Return on investment ratio is the ratio of the:

Correct Answer

[#79] What is considered as the standard unit which forms the basis of a country’s domestic money supply?

Correct Answer

[#80] Which one of the following definitions is correct?

Correct Answer