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Civil Engineering :: Engineering Economy

  1. In a cash flow series :

  2. 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

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  3. 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 :

  4. A.
    (1 + ni)
    B.
    (ni - 1)
    C.
    ni
    D.
    None of these

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  5. Pick up the correct statement from the following:

  6. 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

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  7. Pick up the correct statement from the following:

  8. A.
    The ability of a company to meet obligations which are likely to mature in short term, is called liquidity.
    B.
    The liquidity ratio may be defined as a relationship of current liabilities and current assests and advances.
    C.
    The liquidity ratios are used to indicate the financial position of the firm.
    D.
    All of these

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  9. The capital Recovery Factor (equal payments) of Capital Recovery Annuity is :

  10. A.

    B.

    C.

    D.

    None of these.

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  11. Current ratio is :

  12. A.

    B.

    C.

    D.

    None of these.

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  13. The interest calculated on the basis of 365 days a year, is known as :

  14. A.
    interest
    B.
    ordinary simple interest
    C.
    exact simple interest
    D.
    None of these

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  15. If S is the future capital accumulated in n years at the rate of interest i per annum, then present worth is :

  16. A.
    B.
    S(1 + i)n
    C.
    S(1 + i)1/n
    D.
    None of these.

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  17. In a cash-flow diagram :

  18. A.
    Time 0 is considered to be the present
    B.
    Time 1 is considered to be the end of time period 1
    C.
    A vertical arrow pointing up indicates a positive cash flow
    D.
    An arrow pointing downward indicates a negative cash flow
    E.
    All of these

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  19. Each financial ratio is generally compared by

  20. A.
    a past ratio calculated from the past financial standard of the firm.
    B.
    a ratio developed by using the projected financial statement of the firm.
    C.
    a ratio of some selected firms most progressive and successful at the point of consideration.
    D.
    All of these

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