ENGINEERING ECONOMY

Question 1

What is defined as the certificate of indebtedness of corporation usually for a period not less than 10 years and guaran

Accepted Answer

Bond

Question 2

Which is NOT an essential element of an ordinary annuity?

Accepted Answer

The first payment is made at the beginning of the first period.

Question 3

A type of bond to which are attached coupons indicating the interest due and the date when such interest is to be paid

Accepted Answer

coupon

Question 4

When free competition exists, the price of a product will be that value where supply is equal to the demand, this is

Accepted Answer

law of supply and demand

Question 5

What is the simplest form of business organization?

Accepted Answer

Sole proprietorship

Question 6

A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of subsidiaries

Accepted Answer

Collateral trust bond

Question 7

What stock represents ownership and enjoys certain preferences than ordinary stock?

Accepted Answer

Preferred stock

Question 8

A mathatical expression also known as the present value of annuity of one is called

Accepted Answer

present worth factor

Question 9

A bond without any security behind them except a promise to pay by the issuing corporation is called ___

Accepted Answer

debenture bond

Question 10

what is a method of computing depreciaton in which the annual charge is a fixed percentage of the depreciated book value

Accepted Answer

Declining balance method

Question 11

Which one refers to an annuity where the payments are made at the start of each period, beginning from the first period?

Accepted Answer

Annuity due

Question 12

What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a

Accepted Answer

Interest rate

Question 13

The amount of companys profit that the board of directors of the corporation decides to distribute to ordinary sharehold

Accepted Answer

dividend

Question 14

Which is true about partnership?

Accepted Answer

it will be dissolved if one of the partners ceases to be connected w/ partn

Question 15

What refers to the negotiable claim issued by a bank in lieu of a term deposit?

Accepted Answer

Certificate of deposit

Question 16

The amount of property in which a willing buyer will pay to a willing seller for the property when neither one is under

Accepted Answer

Market value

Question 17

Lands, buildings, plants, and machineries are examples of what type of asset?

Accepted Answer

Fixed asset

Question 18

is the element of value which a business has earned through the favorable consideration and patronage of its customers

Accepted Answer

Goodwill

Question 19

Which is an example of intangible asset?

Accepted Answer

Patents

Question 20

What refers to the function of interest rate and time that determines the cumulative amount of a sinking fund resulting

Accepted Answer

Sinking fund factor

Question 21

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

Accepted Answer

Mortgage bond

Question 22

Refers to a series of equal payments occuring at equal interval of time where the first payment is made after several pe

Accepted Answer

Deferred annuity

Question 23

Double taxation is a disadvantage of which business organization?

Accepted Answer

Corporation

Question 24

What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equiv

Accepted Answer

Time value of money

Question 25

The deliberate lowering of the price of a nations currency in terms of the accepted standard (Gold, American dollar or

Accepted Answer

Currency devaluation

Question 26

What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.?

Accepted Answer

Commodity

Question 27

What type of bond where the corporations owners name are recorded and the interest is paid periodically to the owners wi

Accepted Answer

Registered bond

Question 28

What do you call the increase in the value of a capital asset?

Accepted Answer

Capital gain

Question 29

The profit derived from a project or business enterprise without consideration of obligations to financial contributors

Accepted Answer

economic return

Question 30

Which is true about corporation?

Accepted Answer

The stockholders ofthe corporation are only liable tothe extent investment

Question 31

What refers to the place where sellers and buyers come together?

Accepted Answer

Market

Question 32

What do you call the worth of property as shown in the accounting records?

Accepted Answer

Book value

Question 33

What type of bond is issued jointly by two or more corporations?

Accepted Answer

Joint bond

Question 34

What refers to the residual value of a companys assets after all outside liabilities have been allowed for?

Accepted Answer

Equity

Question 35

What type of annuity where the payments are made at the end of each period, starting from the first period?

Accepted Answer

Ordinary annuity

Question 36

What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other

Accepted Answer

Common stock

Question 37

What is defined as the future value minus the present value?

Accepted Answer

Discount

Question 38

What type of bond whose guaranty is in lien on railroad equipment, such as freight and passenger cars, locomotives, etc?

Accepted Answer

Equipment obligation Bond

Question 39

Salvage value is sometimes known as ____

Accepted Answer

Second-hand value

Question 40

When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of

Accepted Answer

Law of diminishing return

Question 41

denotes the fall in the exchange rate of one currency in terms of the others. This term usually applies to the floating

Accepted Answer

Currency depreciation

Question 42

What do you call the reduction in the money value of a capital asset?

Accepted Answer

Capital loss

Question 43

What refers to the lessening of the value of an asset (eg. natural resources, such as coal, oil, etc.) due to the decrea

Accepted Answer

Depletion

Question 44

The quantity of a certain commodity that is offered for sale at a certain price at a given time and place is known as __

Accepted Answer

Supply

Question 45

In case of bankruptcy of a partnership,

Accepted Answer

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

Question 46

In computing depreciation of an equipment, which of the following represents the first cost?

Accepted Answer

All of the choices

Question 47

What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determ

Accepted Answer

Fair value

Question 48

What do you call the market situation whereby there is only one buyer of an item for which there are no goods substitute

Accepted Answer

Monopsony

Question 49

What refers to a document that shows proof of legal ownership of a finacial security?

Accepted Answer

Coupon

Question 50

What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified

Accepted Answer

Franchise value

ENGINEERING ECONOMY

Questions 50

ENGINEERING ECONOMY

Questions 50