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MCQ in Engineering Economics Part 4 - ECE Board Exam - Ace Your Board Exam With PinoyBIX
MCQ in Engineering Economics Part 4 - ECE Board Exam - Ace Your Board Exam With PinoyBIX
This is the Multiples Choice Questions Part 4 of the Series in Engineering Economics as one of the General Engineering and
Applied Sciences (GEAS) topic. In Preparation for the ECE Board Exam make sure to expose yourself and familiarize in
each and every questions compiled here taken from various sources including past Board Questions in General Engineering
and Applied Sciences (GEAS), Engineering Economy Books, Journals and other Engineering Economy References.
D. The stock holders of the corporation are only liable to the extent of their investments.
View Answer:
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Answer: Option D
Explanation:
152. Aggregation of individuals formed for the purpose of conducting a business and recognized by law as a fictitious
person is called ______.
A. Partnership
B. Investors
C. Corporation
D. Stockholders
View Answer:
Answer: Option C
Explanation:
153. An association of two or more persons for the purpose of engaging into a business for profit is called ______.
A. Entrepreneurship
B. Partnership
C. Proprietorship
D. Corporation
View Answer:
Answer: Option B
Explanation:
154. What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other
claims have been settled?
B. Preferred stock
C. Incorporator stock
D. Common stock
View Answer:
Answer: Option D
Explanation:
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155. What stock represents ownership and enjoys certain preferences than ordinary stock?
A. Authorized stock
B. Preferred stock
C. Incorporator’s stock
D. Presidential stock
View Answer:
Answer: Option B
Explanation:
156. The amount of company’s profit that the board of directors of the corporation decides to distribute to ordinary
shareholders is called ______.
A. Dividend
B. Return
C. Share of stock
D. Equity
View Answer:
Answer: Option A
Explanation:
157. What refers to the residual value of a company’s assets after all outside liabilities (shareholders excluded) have been
allowed for?
A. Dividend
B. Equity
C. Return
D. Par value
View Answer:
Answer: Option B
Explanation:
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A. Proprietorship
B. Assets
C. Equity
D. Liability
View Answer:
Answer: Option C
Explanation:
159. Cash money and credit necessary to establish and operate an enterprise are generally called ______.
A. Capital
B. Funds
C. Assets
D. Liabilities
View Answer:
Answer: Option A
Explanation:
A. Franchise
B. Partnership
C. Stock
D. Corporation
View Answer:
Answer: Option C
Explanation:
161. The profit derived from a project or business enterprise without consideration of obligations to financial contributors
and claims of others based on profit is known as ______.
A. Yield
B. Economic return
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C. Earning value
D. Gain
View Answer:
Answer: Option B
Explanation:
162. ______ is the element of value which a business has earned through the favorable consideration and patronage of its
costumers arising from its well known and well conducted policies and operations.
A. Status company
B. Big income
C. Known owners
D. Goodwill
View Answer:
Answer: Option D
Explanation:
A. Cash
C. Furniture
D. Patents
View Answer:
Answer: Option D
Explanation:
164. Lands, buildings, plants and machineries are example of what type of asset?
A. Current asset
C. Fixed asset
D. Intangible asset
View Answer:
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Answer: Option C
Explanation:
165. What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by
an investment?
A. Economic return
B. Yield
C. Rate of return
D. Return of investment
View Answer:
Answer: Option C
Explanation:
A. Fixed assets
B. Non-liquid assets
C. Liquid assets
D. Ccash
View Answer:
Answer: Option C
Explanation:
B. Cost accounting
C. Standard cost
D. Overhead cost
View Answer:
Answer: Option A
Explanation:
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168. What is the change in cost per unit variable change called?
A. Variable cost
B. Incremental cost
C. Fixed cost
D. Supplemental cost
View Answer:
Answer: Option B
Explanation:
A. Bookkeeping system
B. Ledger system
C. Balance check
View Answer:
Answer: Option A
Explanation:
170. What is a secondary book of accounts, the information of which is obtained from the journal is called?
A. Balanced sheet
B. Ledger
C. Worksheet
D. Trial balance
View Answer:
Answer: Option B
Explanation:
A. Work book
B. Journal
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C. Ledger
D. Account book
View Answer:
Answer: Option B
Explanation:
172. All the proceeds which are received by the business as a result of the sale of goods is called ______.
A. Net income
B. Gross income
C. Net revenue
D. Total sales
View Answer:
Answer: Option B
Explanation:
173. All are classified under direct labor expenses EXCEPT one. Which one?
A. Inspection cost
B. Testing cost
C. Assembly cost
D. Supervision cost
View Answer:
Answer: Option D
Explanation:
174. What is a measure of the average speed with which accounts receivable are collected?
A. Current ratio
B. Quick ratio
D. Receivable turnover
View Answer:
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Answer: Option D
Explanation:
175. The ratio of the net income before taxes to net sales is called ______.
A. Current ratio
B. Inventory turnover
D. Price-earnings ratio
View Answer:
Answer: Option C
Explanation:
A. Due credit
B. Tax credit
C. Credible credit
D. Revenue credit
View Answer:
Answer: Option B
Explanation:
177. What is used when a quick estimate of the doubling time for the invested money is needed?
A. Rule of 48
B. Rule of 36
C. Rule of 24
D. Rule of 72
View Answer:
Answer: Option D
Explanation:
178. What is the increase in the money value of a capital asset is called?
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A. Profit
B. Capital gain
C. Capital expenditure
D. Capital stock
View Answer:
Answer: Option B
Explanation:
179. What is the reduction in the money value of capital asset is called?
A. Capital expenditure
B. Capital loss
C. Loss
D. Deficit
View Answer:
Answer: Option B
Explanation:
180. What refers to the negotiable claim issued by a bank in lien of a term deposit?
A. Time deposit
B. Bond
D. Certificate of deposit
View Answer:
Answer: Option D
Explanation:
181. What denotes in the fall in the exchange rate of one currency in terms of the others? This term is usually applies to the
floating exchange rate.
A. Currency appreciation
B. Currency depreciation
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C. Currency devaluation
D. Currency float
View Answer:
Answer: Option B
Explanation:
182. The deliberate lowering of the price of a nation’s currency in terms of the accepted standard (Gold, American dollar or
the British pound) is known as ______.
A. Currency appreciation
B. Currency depreciation
C. Currency devaluation
D. Currency float
View Answer:
Answer: Option C
Explanation:
183. What refers to the saving which takes place because goods are not available for consumption rather than consumer
really want to save?
A. Compulsory saving
B. Consumer saving
C. Forced saving
D. All of these
View Answer:
Answer: Option C
Explanation:
184. The flow back of profit plus depreciation form a given project is called ______.
A. Capital recovery
B. Cash flow
C. Economic return
D. Earning value
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View Answer:
Answer: Option B
Explanation:
185. As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation
or the reduction of a debt by either periodic or irregular prearranged programs is called ______.
A. Annuity
B. Amortization
C. Capital recovery
D. Annuity factor
View Answer:
Answer: Option B
Explanation:
View Answer:
Answer: Option C
Explanation:
187. The true value of interest rate computed by equations for compound interest for a 1 year period is known as ______.
A. Expected return
B. Nominal interest
C. Effective interest
D. Economic return
View Answer:
Answer: Option C
Explanation:
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View Answer:
Answer: Option A
Explanation:
A. Net sale
B. Owner’s equity
C. Inventory turnover
D. Quick assets
View Answer:
Answer: Option A
Explanation:
A. Current ratio
B. Quick ratio
D. Price-earnings ratio
View Answer:
Answer: Option B
Explanation:
191. What is a government bond which has an indefinite life rather than a specific maturity?
A. Coupon
B. T-bill
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C. Debenture
D. Consol
View Answer:
Answer: Option D
Explanation:
192. A form of business firm which is owned and run by a group of individuals for their mutual benefit is called ______.
A. Cooperative
B. Corporation
C. Enterprise
D. Partnership
View Answer:
Answer: Option A
Explanation:
193. 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?
A. Stock pile
B. Hoard stock
C. Buffer stock
D. Withheld stock
View Answer:
Answer: Option C
Explanation:
194. The ability to meet debts as they become due is known as ______.
A. Solvency
B. Leverage
C. Insolvency
D. Liquidity
View Answer:
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Answer: Option A
Explanation:
A. Solvency
B. Liquidity
C. Leverage
D. Insolvency
View Answer:
Answer: Option B
Explanation:
View Answer:
Answer: Option A
Explanation:
A. Liquidity
B. Solvency
C. Relative risk
D. All of these
View Answer:
Answer: Option D
Explanation:
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A. Price-earnings ratio
B. Current ratio
D. Gross margin
View Answer:
Answer: Option B
Explanation:
View Answer:
Answer: Option B
Explanation:
200. What is defined as the current assets minus inventories and prepaid expenses?
B. Price-earnings ratio
D. Quick ratio
View Answer:
Answer: Option D
Explanation:
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PART 10: MCQ from Number 451 – 500 Answer key: PART 10
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