Engineering Economy Mcqs Start Creating PDF

MCQ: What is defined as the current assets minus inventories and prepaid expenses ?

1. Profit margin ratio
2. Price-earnings ratio
3. Return of investment ratio
4. Quick ratio

MCQ: The common ratio is the ratio of_______________?

1. Net credit sales to average net receivable
2. Current assets to current liabilities
3. Gross profit to net sales
4. Net income to owner’s equity

MCQ: What is an index of short-term paying ability ?

1. Price-earnings ratio
2. Current ratio
3. Profit margin ratio
4. Gross margin

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

1. Liquidity
2. Solvency
3. Relative risk
4. All of the above

MCQ: What is the basic accounting equation ?

1. Assets = liability + owner’s equity
2. Liability = assets + owners’ equity
3. Owner’s equity = assets + liability
4. Owner’s equity = liability – assets

MCQ: The ability to convert assets to cash quickly is known as ________________?

1. Solvency
2. Liquidity
3. Leverage
4. Insolvency

MCQ: The ability to meet debts as they become due is known as __________________?

1. Solvency
2. Leverage
3. Insolvency
4. Liquidity

MCQ: 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 ?

1. Stock pile
2. Hoard stock
3. Buffer stock
4. Withheld stock

MCQ: A form of business firm which is owned and run by a group of individuals for their mutual benefit is called ___________________?

1. Cooperative
2. Corporation
3. Enterprise
4. Partnership

MCQ: What is a government bond which has an indefinite life rather than a specific maturity ?

1. Coupon
2. T-bill
3. Debenture
4. Consol