The first derivative of kinetic energy with

respect to time is:

A. Power
B. Force
C. Work
D. Momentum
The process of exchange where no single
medium of exchange is used.

A. Exchange
B. Liquidated damage
C. Partial
D. Hunter
Means the sum agreed upon in advance by
the parties as compensation for a breach

A. Unliquidated damage
B. Advance wages
C. Liquidated damage
D. All of these
A written acknowledgement by a carrier that
he has received the goods for shipment

A. Crate bill
B. Bill of Lading
C. Ticket
D. Contract to ship
A letter of request whereby one person,
usually a merchant or banker, requests some
other person to advance money or to give
credit up to a certain amount

A. Check
B. Letter of credit
C. Letter of debit
D. Acknowledgement
If an increase in the capital stock is made
when actually no additional value has been
paid either in cash or in money’s worth:

A. Stock watering
B. Inflation
C. Deflation
D. depletion
A check drawn from a depositor against his
account which the bank has marked certified

A. manager’s check
B. personal check
C. certified check
D. company check
A written contract, under seal, whereby a
corporation binds itself to pay a specific sum
of money to the owner of the bond

A. corporation bond
B. coupon bond
C. collateral bond
D. sealed bond
The unit prefix nano is opposite to:

A. Mega
B. Tera
C. Giga
D. Hexa
The arc length equal to the radius of the
circle is called:

A. 1 radian
B. pi radian
C. 1 quarter circle
D. 1 grad
Find the deflection, y, at the free end of the
cantilever beam. Neglect the beam weight

A. FL3/3EI
B. FL3/48EI
C. FL3/12EI
D. FL3/24EI
For violating RA 8495, the penalty is not less
than P50,000 nor more than ________.

A. P100,000
B. P200,000
C. P150,000
D. P300,000
To be qualified to become a member of the
Board of Mechanical Engineering, the
minimum age is ______.

A. 35
B. 40
C. 45
D. 32
Maximum plant capacity in which a CPM is
allowed to operate, tend or maintain:

A. 200 kw
B. 500 kw
C. 300 kw
D. 100 kw
Section 22 of Republic Act No. 8495 “The
Philippine Mechanical Engineering Act of 1998” is
about:

A. Oath
B. Issuance of Certificates of Registration and
Professional License
C. Re-examination
D. Seal of a Professional Mechanical Engineer
The law of that governs that practice of
mechanical engineering is called:

A. CA No. 194
B. RA No. 7920
C. RA No. 8495
D. RA No. 8995
To be responsible and in-change in the
preparation of plans and designs of a
mechanical plant:

A. PME
B. RME
C. CPM
D. CPM, RME and PME
Maximum plant capacity in which a licensed
ME is allowed to operate, tend or maintain

A. 300 kw
B. 2000 kw
C. 500 kw
D. 6000 kw
For a mechanical plant with capacity of 100
kw or over but not more than 300 kw, the
personnel required must be at least one:

A. CPM
B. PME
C. RME
D. CPM, RME, or PME
The PRC accredited national association for
mechanical engineers:

A. ASME
B. PAMEE
C. PSME
D. PICE
The new Mechanical Engineering Law was
signed last ________.

A. February 12, 1998

B. February 6, 1998
C. January 18, 1998
D. February 14, 1998
The new Mechanical Engineering is a House
Bill No. 9806 was finally passed by the House
of the Representative last _______

A. February 3, 1998
B. January 28, 1998
C. January 18, 1998
D. February 12, 1998
The new Mechanical Engineering Law is a
Senate Bill No. 1793 was finally passed by
the senate last ________

A. February 14, 1998

B. January 12, 1998
C. February 3, 1998
D. January 28, 1998
To teach professional subject in Mechanical
Engineering course unless he is duly licensed:

A. PME
B. Masters Degree in ME
C. Any of these
D. Doctorate Degree Holder in ME
To be in responsible charge of the construction,
erection, installation, alteration or of the
performance of the mechanical engineering service
in connection with the manufacture, sale, supply, or
distribution of any mechanical works unless he is
duly registered:

A. CPM
B. Graduate of ME
C. PME or RME
D. Doctor of education
100 kw or over but not more than 300 kw,
the personnel required in one CPM or one
RME or one PME provided that any
mechanical work in this category operating
on more than _______ shift every 24 hours.

A. 3
B. 2
C. 4
D. 1
The Mechanical Engineering Law has how
many articles

A. 2
B. 3
C. 5
D. 6
What are the contents in article II?

A. Board of Mechanical Engineering

B. Statement of Policy
C. Term of Office
D. Examination, Registration, and License
What are the contents in article III?

A. Board of Mechanical Engineering

B. Practice of Profession
C. Examination, Registration, and License
D. Term of Office
The Board of Mechanical Engineering is
composed of _____ members to be
appointed by the President of the
Philippines.

A. 1
B. 3
C. 2
D. 5
One of the following is not the correct qualification of
the members of the Board?

A. Natural born citizen and resident of the Philippines

B. Must be at least 35 years of age
C. A PME with a valid professional license and active
practitioner for not less than 10 years
D. Has been convicted of any offense and moral
turpitude
A member of the board shall hold office for
alarm of ______ years from the date of his
appointment

A. 3
B. 2
C. 1
D. 4
No member of the board shall serve for more
than _____ regular terms.

A. 1
B. 2
C. 3
D. None of the above
Which of the following is/are are the powers and
duties of the Board?

A. To supervise the registration, licensure and

practice of Mechanical Engineers in the
Philippines
B. To issue the certificate of registration to
successful examinees
C. To approve, issue, limit or revoke temporary
license to practice mechanical engineering
D. All of these
One of the qualifications of applicants for
professional mechanical engineer must be:
he has specific record of a total of _____ or
more I of active mechanical engineering
practice.

A. 2
B. 3
C. 4
D. 5
One of the qualifications of applicants for
PME be: he is competent to practice, as
attested to by at least ____ professional
mechanical engineering.

A. 1
B. 2
C. 3
D. Many
Section 34 in the Mechanical Engineering
Law is about:

A. Preparation of plans, personnel required

B. Personnel required in mechanical plant
C. Field of action
D. Renewal of license
Section 24 in the Mechanical Engineering
Law is about:

A. Seal of professional mechanical engineer

B. Revocation and suspension of certificate
C. Integration and accreditation of ME
D. Grounds for suspension
Section 42 in the Mechanical Engineering
Law is about:

A. Penalties
B. Oath
C. Title
D. Statement of policy
The mechanical engineering law is composed
of ____ sections:

A. 68
B. 48
C. 54
D. 35
Section 15 in the Mechanical Engineering Law is
about:

A. Qualifications of applicants for mechanical

engineer
B. Qualifications of applicants for CPM
C. Qualifications of applicants for PME
D. None of the above
The new mechanical engineering law is a
consolidation of the senate bill and house bill
nos.

A. 1792 and 8806

B. 1893 and 9912
C. 1993 and 9907
D. 1793 and 9806
Republic Act 8495 known as the mechanical
engineering act of 1998 was approved last:

A. February 12, 1998

B. February 3, 1998
C. January 26, 1998
D. February 25, 1998
At section 35 of ME law, pressurized pipes
will have a working pressure of not less
than?

A. 150 kPa
B. 95 kPa
C. 100 kPa
D. 70 kPa
The PSME is established in what year?

A. 1945
B. 1970
C. 1952
D. 1998
PSME is one the accredited professional
organization in the Philippines with a
certificate no. of:

A. 001
B. 004
C. 002
D. 010
The exact period when the mechanical
engineering law began and held in Manila
during the third regular session of the tenth
congress

A. July 28, 1997

B. February 4, 1998
C. August 20, 1997
D. February 21, 1998
What are the contents in article I?

A. ME Laws
B. Title, statement of policy, and definition
of terms
C. Contents of ME Laws
D. Board of ME
What are the contents in article V?

A. Final conclusion
B. Penal and concluding provision
C. Penalties
D. Transitory provisions
What are the contents in article IV?

A. Practice of the profession

B. Personnel required in mechanical plant
C. Preparation of plants
D. Posting of certificates
Which of the following ware required to secure a
temporary/special permit from the board of mechanical
engineering?

A. Mechanical engineers from other countries called in

for consultation
B. Foreigners employed as technical officers
C. Foreigners employed as consultant in such
installation
D. All of these
In section 18, to pass the examination, a
candidate must obtain _____ percent in any
of the subject and obtained an average of
____ % in all subjects.

A. 70%, 50%
B. 50%, 70%
C. 75%, 60%
D. 50%, 75%
In section 41, where a position requires a
professional mechanical engineer license, a
holder of a ____ with registered mechanical
engineers license shall be considered for the
position

A. Masters degree in ME only

B. Doctorate degree in ME only
C. Masters or Doctorate degree in ME
D. NOTA
In section 41, a government or private
institution where a position requires a
masters degree holder of _____ license shall
be eligible the position.

A. PME
B. RME
C. CPM
D. PME, RME, or CPM
In section 6, a member of the board shall
hold office for a term of 3 years from the
date of his appointment and no member of
the board shall serve for more than ____
regular terms

A. 1
B. 3
C. 2
D. 4
In section 6, any vacancy occurring within a term of
a member due to some cause, shall be filled by
appointment by the president of the Philippines and
such member appointed shall serve for the
unexpired portion of the term vacated without
prejudice to serve for a maximum of ____ full terms

A. 1
B. 3
C. 2
D. 4
What is the minimum pipe working pressure
to be considered as mechanical equipment?

A. Less than 70 kPa

B. 70 kPa
C. 60 kPa
D. 40 kPa
One of the most important qualification for
PME, that he is competent to practice as
attested by at least _____.

A. 2 PME
B. 1 PME
C. 2 ME
D. 1 CPM
The rules and regulations implementing the
Philippine Mechanical Engineering Act of
1998 are formulated and issued pursuant to
what article of RA 8495?

A. Article V
B. Article I
C. Article IV
D. Article II
OTEC means

A. Organization of technical engineers

countrywide
B. Ocean thermal energy conversion
C. Ocean thermal energy conservation
D. Ocean technical engineers corporation
What is the meant by the term board?

A. Chairman of the board

B. Chairman of the committee
C. Board of mechanical engineering
D. PRC board
In the guidelines for applicants in professional
mechanical engineer, the following papers must be
submitted (1) affidavit of the applicant, (2)
certificate of experience, (3) list of designs and (4)
certificate of competence under oath by a _____.

A. RME
B. PME
C. CPM
D. Manager
Which of the following refers to as a practice of
mechanical engineering?

A. Project studies of any mechanical projects

B. All of these
C. Management of the installation of mechanical
projects
D. Management of the sale of mechanical parts
Which of the following is not a qualification of the
members of the board?

A. Must not, for a period of 5 consecutive years be

a member of a faculty of any institution
B. Has never been convicted to any offense
C. A professional mechanical engineer
D. An active practitioner for not less than 10 years
prior to his appointment
One of the most important qualifications for
profession mechanical engineer is to have a
specific record of a total of years or more of
active mechanical engineering practice

A. 2
B. 5
C. 3
D. 4
The seal of a PME is in a form a gear with a
40 mm diameter outer circle, 20 mm
diameter inner circle. Inside the lower
circular band shall be inscribed, the words

A. mechanical engineer
B. official seal
C. name of the professional
D. registration number
What is meant by the commission chairman?

A. PRC commissioner
B. Chairman of the board
C. Chairman of the CHED
D. Chairman of the CPE
An important guideline for applicants in
professional mechanical engineer
examination is to require the applicant to
present himself before at least 2 members of
the board for ____ interviews

A. 3
B. 1
C. 4
D. 2
In the evaluation of the experience of the
applicants in PME examination, the following
should be considered: design experience,
maintenance and operation, fabrication and shop
practice, and _____.

A. Management
B. Operation
C. Employment
D. Installation
In the meetings of the board, in the absence
of the chairman, which of the members will
preside?

A. 2 members
B. Senior member
C. Commissioner
D. Assistant commissioner
It is the unification of all mechanical
engineers including CPM into one national
organization of mechanical engineers?

A. Engineering firm
B. Engineering management
C. Consultation
D. Integration
In section 7 of the implementing rules and
regulations, a member of the board, should
hold office for a term of ______ years from
the date of his appointment.

A. 2
B. 4
C. 3
D. 6
What are the contents in Rule 5?

A. Licensure exam for the practice of

mechanical engineering
B. Administrative proceedings
C. Miscellaneous provision
D. Practice of mechanical engineer
In the implementing rules and regulations,
what is the content in section 24?

A. Definition of terms
B. Issuance of certifications and
registrations
C. Scoop of examination
D. Renewal of professional license
The official seal of the board represented by
a drawing of:

A. Gear
B. Hero’s steam engine
C. Spherical kettle
D. Internal cylinder
In section 28, to pass the examination, a
candidate for PME, RME, and CPM must
obtained an average of _____ percent in all
subject, with no rating below _____ percent
in any of the subject.

A. 70%, 70%
B. 50%, 70%
C. 70%, 60%
D. 70%, 50%
Which of the following is/are grounds for the
revocation of professional certificate?

A. Use of any fraud in obtaining certificate

B. Negligence
C. All of these
D. Violation of the policies of the board
The board of mechanical engineering is
composed of:

A. One chairman and a member

B. Three members
C. One chairman, and two members
D. Five members
Which of the following is not a qualification
members of the board?

A. Resident of the Philippines

B. Holder of degree of BSME
C. Must at least 35 years old
D. Must be a national officer of the PSME
The seal of a PME is in a form a gear with a
40 mm diameter outer circle, 20 mm
diameter inner circle. Inside the upper
circular band shall be inscribed, the words

A. Professional mechanical engineer

B. Registered mechanical engineer
C. Mechanical engineer
D. Professional engineer
In the implementing rules and regulations,
what is the content in section 31?

A. Full computerization of examination

B. Renewal of professional license
C. Qualifications of the board
D. Transitory provision
What is the content in rule 11?

A. Statement of policy
B. Effectivity
C. Grounds for the suspension
D. Official seal of the board
The title of resolution of No. 16 series of 1998 is:

A. Code of ethics of mechanical engineers

B. Philippine mechanical engineering code
C. Rules and regulations implementing RA 9495
D. mechanical engineering act of 1998
Which of the following is not considered a
mechanical equipment?

A. Xerox machine
B. Fired pressure vessel
C. Internal combustion engine
D. Crane
What is the content in section 43?

A. Seal of the professional mechanical engineer

B. Code of ethics
C. Teaching of mechanical engineering subject
D. Report of the board
The rules and regulations implementing the
Philippine mechanical engineer act of 1998
are formulated and issued pursuant to what
section of RA 8495?

A. Section 5
B. Section 49
C. Section 10
D. Section 43
The seal of the professional mechanical
engineering is in the form of

A. Kettle
B. Gear
C. Pressure vessel
D. Machine
The seal of a PME is in a form a gear with a
40 mm diameter outer circle and a 20 mm
diameter inner circle. A rectangular band
place horizontally across the center of the
gear is the ______.

A. Registration number
B. Name of the professional
C. Official seal
D. Company name
In the code of ethics for mechanical engineers in the
Philippines, rule No. 5 states that “the mechanical
engineer shall honor and respect the supreme
authority of the state, the rule of law, obligation and
privileges of citizens recognized and guaranteed by the
constitution, for the Philippines”. This statement is for
our relationship ________.

A. The State
B. Labor
C. The community
D. Employers
In the code of ethics for mechanical engineers in the
Philippines, rule No. 14 states that “He shall strive to
improve the skills of his workmen, pay them a fair
living wage, and instruct them on how to prevent
accident in their place of work”. This statement if for
our relationship ______.

A. Labor
B. Client
C. Safety
D. Associates
In the code of ethics for mechanical engineers in the
Philippines, rule No. 18 states that “ the mechanical
engineering is entitled to a just and fair
compensation for his services”. This statement is for
our relationship ________.

A. Clients and employers

B. Employers only
C. Colleagues and associates
D. Salary and wage
The digits of a measurement which a
scientist reads and estimate on a scale are
called:

A. Accuracy
B. Precision
C. Significant figures
D. Experimentation
A tax on imports:

A. Import tariffs
B. Value added tax
C. Import quote
D. Capital account
Funds supplied by the others on which a fixed rate
of interest must be paid and the debt be repaid at
a specific time

A. Borrowed capital
B. First cost
C. Discount
D. Bond
Relative to the force needed to keep a box
moving at constant velocity across a floor, to
start the box moving usually needs:

A. Less force
B. The same force
C. More force
D. Any of the above, depending on the
natures of the surface in contact
When two surfaces are in contact, the frictional force
between them depends on which one or more of the
following?

A. The normal force pressing one surface against the

other
B. All of these
C. Whether the surfaces are stationary or in relative
motion
D. Whether a lubricant is used or not
A thermodynamic property that was first
introduced by Clausius in 1865 and could be
defined as the measure of the irreversibility
of the system or substance

A. Enthalpy
B. Internal energy
C. Entropy
D. Temperature
The measure of the unavailable energy in an
irreversible process

A. Enthalpy
B. Internal energy
C. Entropy
D. Temperature
That portion of the universe, an atom, a
certain quantity of matter, or certain volume
in space that one wishes to study

A. Property
B. System
C. Fluid
D. State
Descriptive characteristics used to express
the behavior of the system or substance

A. Datum
B. State
C. Properties
D. System
An oblique equilateral parallelogram

A. Square
B. Rhombus
C. Rectangle
D. Trapezoid
In a diesel engine, the duration between the
time of injection and the time of ignition is
called:

A. Explosion period
B. Delay period
C. Period of ignition
D. Pre-ignition period
In the design of pulley, key, and shaft

A. Key is made the weaker link

B. Pulley is made weaker
C. Shaft is made weaker
D. All three are designed for same length
The focused volume in space from which the
substance flows. Ex Turbine, pumps, heaters,
etc.

A. Control volume
B. Control space
C. Defined volume
D. Moving elements
A theory stating that it is impossible by any
procedure, no matter how idealized, to
reduced any system to an absolute zero
temperature in finite number of operations.

A. Nerst heat theory

B. Kinetic heat theory
C. Kelvin-Plank theory
D. Clausius theory
When there is no transfer of the working
substance during the process, it is termed as:

A. Transient flow
B. Steady-flow
C. Nonflow
D. Continuous flow
Electric current in a wire is a flow of:

A. Atoms
B. Free electrons
C. Valence electrons
D. Bound electrons
In a series circuit with resistors, the current
is:

A. The same in each resistor

B. Largest in the smallest resistor
C. Largest in the largest resistor
D. Different in each resistor
The unit of electrical pressure is:

A. Watt
B. Volt
C. Ampere
D. Ohm
The unit of electrical resistance:

A. Farad
B. Henry
C. Ampere
D. Ohm
The unit of electrical current flow is:

A. Ampere
B. Weber
C. Coulomb
D. Ohm
In a series circuit, the total resistance is:

A. The sum of reciprocals of all resistances

B. The average of all resistances
C. The sum of all resistances
D. Smaller than the smallest resistances
In a parallel circuit, the total resistance is:

A. Smaller than the smallest resistances

B. The sum of all resistances
C. Larger than the largest resistance
D. The reciprocal of all resistances
In a parallel circuit with unequal resistance on each
branch,

A. The voltage drop across each branch is the same

B. The current on each branch is the same
C. The total resistance is the sum of all R
D. None of these
Are any devices which serve to open or
closed the electrical circuit

A. Plugs
B. Outlets
C. Switches
D. Receptacles
A battery in group of cells connected in:

A. Series
B. Series-parallel
C. Parallel
D. Any of these
The number of cycles per second of an AC
voltage is known as:

A. Frequency
B. Phase angle
C. Waveform
D. Alternation
The ratio of real power to apparent power

A. Power factor
B. Load factor
C. Utilization factor
D. Plant factor
The ratio of power in watts and volt is:

A. Ampere
B. Power factor
C. Load factor
D. Coulombs
Which of the following rules does not apply to a
parallel circuit?

A. Total current flow is the sum of the current in

each path
B. The applied voltage is the same across each path
C. There is more than one path for circuit flow
D. The total resistance is the sum of the individual
resistors
Which of the following statements is not true? In a
simple parallel circuit with only one active source and
three resistive loads Rsub1, Rsub2, and Rsub 3.

A. The reciprocal of the equivalent resistance is the

sum of the reciprocals of the individual resistance
B. The total current is the sum of the length
currents.
C. The equivalent resistance is the sum of the
reciprocals of the individual resistance
D. The voltage drop is the same across all legs
In electrical circuits, the potential difference
across terminals of circuit elements is called:

A. Voltage
B. Current in amperes
C. Resistance in ohms
D. Power in watts
Third law of thermodynamics is also known
as:

A. Clausius heat theorem

B. Joule’s theorem
C. Kinetic theory of energy
D. Nernst heat theorem
Properties that define the thermal and
energy conditions of the fluid

A. Specific properties
B. State properties
C. Transport properties
D. Specific properties
Properties that measures the diffusion
within the fluid resulting from molecular
activities

A. State properties
B. Transport properties
C. Thermodynamic
D. Specific properties
A fluid flows at a constant velocity in a pipe. The fluid
completely fills the pipe, and the Reynolds number is
such that the flow is laminar. If all other perimeters
remain unchanged and the viscosity of the fluid is
decreased a significant amount, one would generally
expect the flow to:

A. Not change
B. Become more laminar
C. Become turbulent
D. Increase
A formal organization of producers within an
industry forming a perfect collision purposely
formed to increase profit and block
newcomers from the industry is called:

A. Oligopoly
B. Corporation
C. Monopoly
D. Cartel
The original amount P if borrowed will have
a future sum of F at an interest rate of i%.
What is the amount of money paid for the
use of borrowed money?

A. Present amount
B. Overhead cost
C. Interest
D. Rate of return
What is the extension of three or more
terms?

A. Polynomial
B. Multi
C. Monomial
D. Trinomial
What are the three fundamental quantities?

A. Volume, weight, time

B. Density, mass, volume
C. Length, mass, time
D. Speed, distance, time
What is the speed of a projectile if it is at the
top of its path?

A. Unchanged
B. Minimum
C. Doubled
D. Maximum
Which of the following is/are short-range
forces?

A. Gravitational force
B. Weak nuclear force
C. Electromagnetic force
D. Strong nuclear force
What happens to the mechanical advantage
of a lever if its effort distance increases?

A. Increases
B. Remains constant
C. Decreases
D. Becomes zero
What law states that there is decrease in
pressure at the side of a moving stream of
fluid?

A. Bernoulli’s Law
B. Archimedes Law
C. Pascal’s Law
D. Hooke’s Law
The interactions responsible for holding
together electrons to their atom as well as
for combining atoms and molecules to
produce larger bodies are:

A. Strong nuclear
B. Weak nuclear
C. Electromagnetic
D. Gravitational
Which of the following substances has the
greatest specific heat?

A. Aluminum
B. Alcohol
C. Glass
D. Iron
What determines the pitch of the sound?

A. Amplitude
B. Wavelength
C. Frequency
D. Speed
What kind of fraction with a numerator that
is greater than the denominator?

A. Improper
B. Proper
C. Mixed
D. Decimal
The exclusive right of a company to provide a
specific product/services in a given region of
the country

A. Permit
B. Franchise
C. Agreement
D. Sales Memo
Assets that cannot be converted into cash
within the accounting period, such as land,
buildings, machinery, and equipment that
are to be used in business operations.

A. Fixed assets
B. Used assets
C. Current assets
D. Intangible assets
Payment of goods and services before they
are received:

A. Current payment
B. Fixed payment
C. Prepaid expense
D. Late payment
Payment of services or goods before they are
rendered:

A. Advance payment
B. Prepaid income
C. Current payment
D. Expense
Assets that lack physical substance but
consists of valuable rights, privileges, or
advantages; examples are patents,
franchises, organizational expense and
goodwill.

A. Current assets
B. Intangible assets
C. Fixed assets
D. Gross assets
Exclusive privilege to use a certain process in
manufacturing:

A. Patent
B. Franchise
C. Goodwill
D. Expense
Permit granted to a business to handle a
given product or to operate within a given
territory or along a certain route:

A. Patent
B. Goodwill
C. Franchise
D. Expense
Factor in business which causes a company
to earn higher than normal rate of return
due to managerial skill, popular acceptance
of the product or some other favorable
circumstances.

A. Patent
B. Goodwill
C. Cleanliness
D. Clearness
Certain costs such as initial incorporation fee
and the cost of legal services in connection
with the formation of the corporation

A. Material expense
B. Labor cost
C. Equity cost
D. Organizational expense
Funds in cash or security form held for
income producing purpose:

A. Investments
B. Expense
C. Assets
D. Peso
Accumulated net earnings of a corporation,
also called reinvested earnings:

A. Retained earnings
B. Fixed deposit
C. Net income
D. Gross income
Net losses in excess of retained earnings
which are deductions in the owner’s equity:

A. Deficit
B. Debts
C. Gain
D. Gross margin
Net income divided by total capital:

A. ROI
B. ROR
C. Interest
D. Asset rate
Rate of return on total assets divided by rate
of return on sales:

A. Income turnover
B. Asset turnover
C. Expenses rate
D. Rate of income
General ability of a company to meet is short
term indebtedness:

A. Rate of return
B. Acid test ratio
C. Current asset turnover
D. Current ratio
A more vigorous measurement of the
company’s ability to service short term debt:

A. Current ratio
B. Rate of return
C. Gross margin ratio
D. Acid test ratio
Additional cost to produce one more unit of
product:

A. Marginal cost
B. Sunk cost
C. Expense
D. Operating cost
Lowering in prices in commodities:

A. Inflation
B. Deflation
C. Bonus
D. Discount