# Engineering Economy Online Exam Questions – Set 05

Are you guys looking for Civil Engineering MCQ Questions with Answers PDF Free Download as per Civil Engineering new exam pattern? You came to the right page. This may assist you to understand and check your knowledge about the Subjects. Students also can take a free test of the Multiple Choice Questions of Civil Engineering. Each question has four options followed by the right answer. These Civil Engineering MCQ Questions are selected supported by the newest exam pattern.

## Q1. Pick up the correct statement from the following:

(A) Engineering economy is a collection of mathematical techniques which simplify economic comparisons
(B) Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one
(C) For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy
(D) All of these

## Q2. 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

## Q3. Earnings per share is the most important ratio for

(A) Share holders
(B) Banks
(C) Company’s management
(D) All of these

## Q4. Pick up the method used for project evaluation and selection in capital budgeting from the following:

(A) Payback period
(B) Internal ratio of return
(C) Net present worth
(D) All the above

## Q5. In the cash flow diagram shown in the given figure

(A) The first disbursement occurs at the end of year 2
(B) The second disbursement occurs at the end of year 4
(C) The first receipt occurs at the end of year 1
(D) All of these

## Q6. Pick up the correct statement regarding financial statement analysis from the following.

(A) Final analysis always involves the use of various financial statements i.e., balance sheet and income statement
(B) The balance sheet is the summary of assets, liabilities and owner’s equity of business at a point in time
(C) The income statement is the summary of revenues and expenses of a firm over a particular period of time
(D) All the above

## Q7. Current ratio is:

(A) Current assets/Current liabilities
(B) (Current assets + loans)/Current liabilities
(C) (Current assets + loans advances)/Current liabilities
(D) None of these

## Q8. Pick up the correct statement from the following:

(A) The capital required to get a project started is the first cost
(B) The first cost is a single cash flow or a series of cash flows that are made in the beginning of the activity’s life span
(C) The first cost of purchasing a car is the sum of the down payment, taxes and dealers charges
(D) All of these

## Q9. Which one of the following statements is correct?

(A) The number of years required to recover the initial cash investment in a project, is called Pay Back period (PBP)
(B) The discount rate that equates the present value of the expected Net Cash Flows (CFs) with the Initial Cash Outflow (ICO) is known as internal rate of return
(C) The present value of the proposal’s net cash flows, less the proposal’s initial cash outflow is known as the Net Present Value (NPV)
(D) All of these

## Q10. The CRF (ep) is also known as: [CRF(EP) – 8% – 7], where

(A) 8% is the rate of interest per year
(B) Money is borrowed for n = 7 years
(C) Both (a) and (b)
(D) Neither (a) nor (b)

Answer: (C) Both (a) and (b)

(A) Labour
(B) Productivity
(C) Wage scale
(D) All of these

## Q12. Pick up the correct statement from the following:

(A) The difference between sales revenue and cost of goods sold, is known as ‘Gross Profit’
(B) The gross profit percentage is the average profit margin obtained on goods sold
(C) The relationship of contribution to sales is known as contribution ratio
(D) All of these

## Q13. 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