Civil Engineering Economy Quiz (or) MCQ

1 .

What is the basic accounting equation?

A)

Ownerâ€™s equity = assets + liability

B)

Assets = liability + ownerâ€™s equity

C)

Ownerâ€™s equity = liability - assets

D)

Liability = assets + ownersâ€™ equity

Correct Answer : Option (B) : Assets = liability + ownerâ€™s equity

2 .

The more critical (or severe) test of the firm's liquidity can be judged by :

A)

Debts ratio

B)

Current ratio

C)

Liquidity ratio

D)

Acid-Test (or Quick) ratio

Correct Answer : Option (D) : Acid-Test (or Quick) ratio

3 .

Which one of the following questions is relevant to the construction estimates :

A)

Did the estimators precisely evaluate site conditions ?

B)

Did the estimators use short cut methods which may be un realistic in their situation ?

C)

How much money will the contractor's risk, loosing if he Were to submit bid on the raw estimate of cost.

D)

All of the above

Correct Answer : Option (D) : All of the above

4 .

Perfect monopoly exists only if :

A)

the single vendor is the only one who has the permit to sell

B)

the single vendor gets the absolute franchise of the product

C)

the single vendor can prevent the entry of all other vendors in the market

D)

the single vendor is the only one who has the knowledge of the product

Correct Answer : Option (C) : the single vendor can prevent the entry of all other vendors in the market

5 .

What refers to the need, want or desire for a product backed by the money to purchase it?

A)

Demand

B)

Supply

C)

Good

D)

Product

Correct Answer : Option (A) : Demand

6 .

Which one of the following is included in financial ratios of the firm ?

A)

Liquidity ratio

B)

Turnover ratio

C)

Profitability ratio

D)

All of the above

Correct Answer : Option (D) : All of the above

Explanation :

* Liquidity ratio

* Turnover ratio
* Profitability ratio

* Ratio of overall performances

7 .

Keeping in view, the feasibility order of magnitude, the preliminary, conceptual or budget estimates, are prepared by :

A)

architect/engineer

B)

owner himself/herself

C)

construction manager

D)

None of the above

Correct Answer : Option (B) : owner himself/herself

8 .

The estimate based on a detailed quantity survey and furnishes the most accurate and reliable estimate possible is known as

A)

Definitive estimate

B)

Conceptual estimate

C)

Probabilistic estimate

D)

None of the above

Correct Answer : Option (A) : Definitive estimate

9 .

The ratio of current assests to current liabilities is known as

A)

Debts ratio

B)

Liquidity ratio

C)

Current ratio

D)

Acid-Test (or Quick) ratio

Correct Answer : Option (C) : Current ratio

10 .

Under ordinary simple interest, how many days in one year?

A)

300

B)

360

C)

365

D)

366

Correct Answer : Option (B) : 360