Engineering Economy Quiz - JCSF Reviewer 60 items

A method of depreciation where a fixed sum of money is regularly deposited at compound interest in a real or imaginary fund in order to accumulate an amount equal to the total depreciation of an asset's estimated life.

• Straight line

• sinking fund method

• declining balance

• SYD method

Which is not an essential element of an ordinary annuity?

• the amount of all the payments are equal

• they are made at equal interval of time

• the first payments is made at the beginning of each period

• compound interest is paid on all amounts in the annuity

Double taxation is disadvantage of which business organization?

• sole proprietorship

• partnership

• corporation

• enterprise

Lands, buildings, plant and machinery are examples of;

• current assets

• fixed assets

• trade investments

• intangible assets

The cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn.

• present worth factor

• interest factor

• time value of money

• yield

A method of computing depreciation in which the annual charge is a fixed percentage of the depreciated book value at the beginning of the year to which the depreciation applies.

• straight

• sinking fund

• sum of-the years digit

• declining balance

Capitalized cost of any structure or property is equal to ?

• first cost + interest

• annual cost of the first cost

• first cost+ cost of perpetual maintenance, operation and replacement

• first cost + salvage value

Defined as the future value minus the present value in a negotiable paper.

• interest

• rate of return

• discount

• capital

A market whereby there is only one buyer of an item for which there are no goods substitute.

• Monopoly

• Monopsony

• oligopoly

• Oligopsony

The function of interest rate and time that determines the cumulative amount of a sinking fund resulting from specific periodic deposits.

• sinking fund factor

• present worth factor

• capacity factor

• demand factor