JCSF ENGINEERING REVIEW CENTER

Engineering Review Center

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Cell # 0917 545 6548 Producer of Brilliant Mechanical Engineers in the CALABARZON

REFRSHER IN GEMAS SEPTEMBER 2010 BOARD EXAM (Set 1)

Prepared by: Engr. Benedicto Fortaleza
Reviewer, August 2010
MULTIPLE CHOICE QUESTIONS
Select the best answer from each of the following questions. On the answer sheet provided, shade the box that corresponds to your choice.
Strictly no erasures allowed.

1. If a man borrowed money from his girl friend with simple interest rate of12 %, determine the present worth of P75, 000.00, which is
due at the end of 7 months.
a. P60, 093.5 b. P65, 093.5 c. P68, 093.5 d. P70, 093.5
2. Clara has invested P1, 000.00 part at 5 % and the remainder at 10 % simple interest. How much is invested at higher rate if the total annual
interest from these investments is P95.
a. P900.00 b. P890.00 c. P100.00 d. P110.00
3. Daisy borrowed money from a certain financing firm. She received P1,842.00 from the firm and promised to pay P2,000.00 at the end of 10
months. What is the simple interest rate?
a. 10.3 % b. 13.0 % c. 11.8 % d. 15.3 %
4. Determine the accumulated amount using the exact simple interest on P1000.00 for the period from January 20,1990 to November 28 of
the same year at 15% interest rate.
a. P1,282.00 b. P1,128.22 c. P1,130.42 d. P2,400.00

5. Determine the value of P20,000.00 in 5 years at 5 % compounded quarterly.

a. P26,540.75 b.P27,540.25 c. P25,640.75 d. P24,250.75
6. What is the least number of years needed to triple a certain amount of money at 5 % compounded annually?
a. 20.5 years b.18.5 years c. 22.5 years d.16.5 years
7. If P5,000.00 shall accumulate for 10 years at 8 % compounded quarterly. Find the compounded interest at the end of 10 years.
a.P6,005.30 b.P6,000.00 c.P6,040.20 d. P6,010.20
8. Determine the effective rate of interest corresponding to 18 % compounded daily.
a.13.75 % b.18.74 % c.19.72 % d. 17.92 %
9. What is the equivalent nominal interest rate compounded quarterly of 12 % compounded semi- annually?
a.10.125 % b. 11.825 % c. 9.175 % d. 10.875 %
10. An investment of m pesos is made at the end of each year for three years, at an interest rate of 9 % per year compounded annually. What
will the peso value of the total investment be upon the deposit of the third payment?
a. 3.278 m Pesos b. 2.278 m Pesos c. 1.278 m Pesos d. 3.728 m Pesos

11. Annual deposits were made in the fund earning 10% per annum. The first deposit was P2000 and each deposit thereafter was P200 less
than the preceding one. Determine the amount in the fund after the sixth deposit.
a. P 9,000 b. P10,000 c. P11,000 d. P12,000
12. The purchase amount of an equipment P 100,000 has been made available through a loan which earns 12% per annum. It has been
agreed that the loan be payable in 10 equal yearly payments. How much then is the yearly payment ?
a. P 10,587.90 b. P 17,698.42 c. P 27,908.65 d. P 18,765.98
13. How many yearly withdrawals of P100 000 can be made from 1 million peso investment at 10%?
a. 10 b. 20 c. 100 d. none of these
14. What is the present worth of a 3 yr annuity paying P 3000 at the end of each year, with interest at 8% compounded annually?
a. P7,731.29 b. P 9,731.79 c. P7,371.29 d. P 9,371.29
15. The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How much is needed to invest
monthly for a year at 12% nominal interest rate, compounded monthly, so that each employee will receive a P 1,000.00 bonus?
a. P 2,750.00 b. P 3,942.44 c. P4,311.44 d. P 3,892.00
16. A fund is to provide an annual scholarship at P4000 for the first 5 years; P6000 for the next 5 years and P9000 thereafter. The fund will
be established 1 year before the first scholarship is awarded. If the fund earns 12% interest, what sum must be deposited?
a. P 50,840 b. P 60,921 c. P 45,076 d. P 12,632
17. A 30 hp sand mill cost P360 000, brokerage cost is P5 000, foundation and installation costs P25 000 other incidental expenses amounted
to P20 000. Salvage value of the mill is estimated to be P60 000 After 20 years. Find the appraisal or book value of the mill using straight
line depreciation method after 10 years,
a. P 163,750 b. P 235,000 c. P 269,000 d. P 145,333
18. A dump truck was bought for P 30,000 six years ago. It will have a salvage value of P 3,000 four years from now. It is sold now for
P8,000. What is its sunk cost (a cost that can’t be recovered due to certain reason) if the depreciation method used is sinking fund method
at six %?
a. P 5,800 b. P 7,712 c. P 8,732 d. P 4,908

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19. A cement mixer costs P45, 000 with an estimated life of 5years. Its salvage value is P2,500 find its yearly depreciation charge using
sinking fund method at 8.5%
a.P 8,500 b. P7,172.54 c.P 8,000 d. P7,692.50
20. An asset is purchased for P9,000.00. Its estimated life is 10 years, after which it will be sold for P1,000.00. Find the book value at the end
of third year if sum –of-the-year’s digit method (SYDM) depreciation is used.
a. P6,100.00 b .P5,072.00 c. P4,500.00 d. P4,800.00
21. A property is purchased at P 100,000 with a salvage value of 10% of the original cost after 8 years of service . If during the first 4 years of
service it produces 100 units per year and 80 units each year for the remaining years. What will be the book value after 5 years of service
using service output method ?
a. P 30,000 b. P 40,000 c. P 50,000 d. P 60,000
22. A certain type of equipment losses 10% of its value each year. The machine cost P2,000 originally. What is the total depreciation after
four years?
a. P200 b.P819.12 c. P542 d. P687.8
23. Steel drum manufacturer incurs a yearly fixed operating cost of P 200 000. Each drum manufactured costs P 160 to produce and sells P200.
What is the manufacturer’s break-even sales volume in drums per year?
a. 1250 units b. 2500 units c. 5000 units d. 1000 units

24. XYZ Corporation manufacturers bookcases that it sells for P 65 each. It costs XYZ P35,000 per year to operate its plant. This sum includes
rent, depreciation charges on equipment, and salary payments. If the cost to produce one bookcase is P50, how many cases must be sold
each year for XYZ to avoid a loss?
a. 2334 cases b. 539 cases c. 750 cases d. 2233 cases
25. A company is planning to put up its own building. The two proposals being considered are:
Proposal A: Construction of the building now, to cost P400 000
Proposal B: Construction of a smaller building now, to cost P300 000 and at the end of 5 years an extension to be added to cost
P200 000. Which is more economical if interest rate is 20% and depreciation to be neglected ? By how much?
a. Proposal A is more economical by around, P 19,624 b. Proposal B is more economical by around P 19,624
c. Proposals A and B are economically equal d. All of these are correct
26. Use to produce consumer goods.
A. Producer Good B. Consumer Good C. Annuity D. Bond
27. The amount of money paid for the use of capital of the income produced by money which has been loaned.
A. Discount B. Annuity C. Interest D. Supply
28. Any method of repaying a debt, the principal and interest included, usually by a series of equal payments at equal intervals time.
A. Capitalized Cost B. Depreciation C. Market value D. Amortization
29. The quantity of certain commodity that is offered for sale at a certain price at given place and time.
A. Supply B. Demand C. Interest D. Discount

30.Fund supplies by others on which a fixed rate of interest must be paid and the debt be repaid at a specific time.
A. Borrowed Capital B. Demand C. Equity Capital D. Appraisal
31. A certificate of indebtedness of a corporation usually for a period of not less 10 years and guaranteed by a mortgage on certain assets of the
corporation or its subsidiaries.
A. depletion B. Savage Value C. Economic Life D. bond
32. On negotiable paper is the difference between the present worth and the worth of the paper at sometime in the future.
A. Bankruptcy B. Fair Value C. Discount D. Economic Life
33.The analysis and evaluation of the factors that will affect the economic success of engineering rojects to the end that a recommendation can be
made which will insure the best use of capital.
A. Engineering Economy B. Economic Life C. Investment D. Present Worth
34. A series of equal payments occurring at equal period of time.
A. Equity Capital B. Amortization C. Investment D. Interest
35. The process of determining the value of certain properly for specific reasons.
A. Bond B. Annuity C. Demand D. Appraisal
36. The decrease in value of a property due to the gradual extraction of its contain.
A. Depletion B. Appraisal C. Salvage Value D. Market Value
37. Funds supplied and used by owners of an enterprise in the expectation that a profit will be earned.
A. Sinking Fund B. Depletion C. Investment D. Amortization
38. The quantity of certain commodity that is brought at a certain price at a given place and time.
A. Investment B. Producer Good C. Demand D. Supply
39.The decrease in value of physical property due to the passage of time.
A. Bankruptcy B. Depreciation C. Market value D. Salvage Value
40. The length of time during which the property be operated at a profit
A. Economic Life B. useful life C. Physical Life D. all of thgese
41. The Length of time during which it is capable of performing the function for which it was designed.
A. Economic Life B. Physical Life C. A and B D. all of these

42. Products that are directly used by people to satisfy their wants.
A. commodity B. Producer Goods C. utility D. Consumer Goods
43.. The price that can be obtained from the sale of a property as second hand.
A. Book value B. Salvage Value C. Appraisal value D. Fair value
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44. The amount which a willing buyer will pay to a willing seller for a property which each has equal advantage and is under no compulsion to
buy or sell.
A. Salvage Value B. Appraisal value C. Fair Value D. all of these
45. Caused by either a lessening in the demand for the service rendered by the asset or the availability of more efficient asset which will
operate with lower out-of-pocket cost.
A. depletion B. Obsolescence C. devaluation D. none of these
46. The sum of the first cost and the present worth of all cost of any property of replacement, operation, and maintenance for a long time or
forever.
A. Physical Life B. fair Value C. Appraisal D. capitalized cost
47. .The value of variable for which the cost for the alternative will be equal.
A. Bankruptcy B. Break-even point C. Savage value D. Investment

48. The value which is usually determined by a disinterested third party in order to establish a price that is fair to both seller and buyer.
A. Agent’s price B. Fair Value C. B and A D. all of these
49. The difference between the book value and actual lower resale value or selling price at a given point is:
A. sunk cost B. Salvage Value C. Fixed cost D. Resale Value
50. Mode of extinguishing obligations when creditor abandons his right to collect:
A. condonation B. Forfeiture C. dept cancellation D.liquidated damages
51. Mechanical Engineers, in the fulfillment of their professional duties, shall hold paramount the safety, health, and __________ of the public.
a. interest b. ideals c. welfare d. ethical standards
52. The mechanical engineer shall, in the practice of his profession, be guided by the _____________, the ideals of service to man and his
environment, and the need to secure unwavering public confidence in his professional competence, integrity and humanity.
a. Rule of Law b. Golden Rule c. Murphy’s Rule d. General Rule
53. The mechanical engineer shall be ready to render the services needed for the development of the resources of the country, and to offer his
mechanical devices and inventions essential or necessary for,
a. national security b. national welfare c. national interest d. national defense

54. The mechanical engineer shall be well-informed of the latest technological progress in his own line of work. He shall encourage or require
whenever appropriate the use or application of standard mechanical equipment, machinery, or process for safety, economy, and,
a. durability b. reliability c. efficiency d. dependability
55. The mechanical engineer shall refrain from associating with or allowing the use of his name by, and any person or entity of,
a. unprofessional conduct b. questionable reputation c. different profession d. suspicious behavior
56. A mechanical engineer shall inform his client or employer the ff., which may influence his judgement, or impair the quality or character of
his services, except,
a. business contracts b. business connections c. business interests d. business affiliations
57. The Code of Ethical and Professional Standards for the practice of Mechanical Engineering profession had taken effect how many days
following its publication in full in the Official Gazette or in a newspaper of general circulation, whichever came earlier.
a. 7 b. 15 c. 14 d. 10
58. Personnel required in a mechanical plant of 200 kW capacity per shift.
a. 1 CPM b. 1 RME c. 1 PME d. any of these
59. Under Transitory Provisions of the ME law, faculty members teaching ME professional subjects shall not be allowed to continue teaching
after 5 years from the approval of the law unless they become PME or RME with,
a) Master of Science in Mechanical Engineering b) Master of Engineering major in Mechanical Engineering
c) Master of Engineering Education major in Mechanical Engineering d) any of the above
60. Who was the first President of the PSME?
a. Engr. Po b. Engr. Marcelo c. Engr. Soliman d. Engr. Javier
61. The article in the ME Law with the most number of sections.
a. Article I b. Article II c. Article III d. Article IV
62. Article I of the ME Law has the least number of sections. How many sections does it have?
a. 2 b. 3 c. 4 d. 5
63. The official seal adopted by the Board of Mechanical Engineering.
a. Hero’s steam engine b. Hero’s steam turbine c. Hero’s steam generator d. Hero’s steam cylinder
64. The term of office of a BME is 3 year term, with possible reappointment, but no more than,
a. 4 regular terms b. 3 regular terms c. 2 regular terms d. 1 regular term
65. A Mechanical Engineering board examinee, failing for the third time, will only be allowed to take another board exam after a lapse of,
a. one semester b. two years c. three semesters d. one year
66. How many articles do the new ME Law consists of?
a. 4 b. 5 c. 6 d. 7
67. The new ME Law was approved during the presidency of,
a. Fidel Ramos b. Joseph Estrada c. Gloria Arroyo d. Corazon Aquino
68. At the time the new ME Law was signed, the Senate President was,
a. Franklin Drilon b. Jose De Venecia c. Neptali Gonzales d. Marcelo Fernan
69. Under the Creation and composition of the BME, the Chairman and two members are to be appointed by the President of the Philippines
from a list of 3 recommendees for each position by PRC from a list of how many nominees submitted by PSME?
a. 4 b. 5 c. 6 d. 7
70. The personnel required in mechanical plants of above 2000 kW capacity with 3 shifts.
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a. 1 PME b. 1 PME or 1 RME c. 3 PMEs d. 3 PMEs or 3 RMEs
71. The annual maintenance cost of a machine shop is 69,994.If the cost making a forging is P 56 per unit and its selling price is P 135 per
forged unit, find the no. of units to be forged to break-even.
A. 886 B. 885 C. 688 D. 668 units
72. The cost of producing a small transistor radio set consists of P23 for labor and P37 for materials, The fixed charges in operating plant is
P100 000 per month. The additional variable cost per piece is P1.00. The ratio set can be sold for P75 each. Determine how many sets must
be produced per month to break-even.
A. 3500 B. 5790 C. 7143 D. 6000 sets/mo
73. Use to produce consumer goods.
A. producer goods B. annuity C. consumer goods D. bond
74. The amount of money paid for the use of borrowed capital a. or the income produced by money which has been loaned.
A. discount B. annuity C. interest D. supply
75. Any method of repaying a dept, the principle and interest included usually by a series equal payments at equal intervals of time.
A. capitalized cost B. market value C. depreciation D. amortization
76. The quantity of a certain commodity that is offered for sale at a certain price at a given place and time
A. supply B. demand C. interest D. discount
77. Funds supplied by others on which a fixed rate of interest must be paid and the dept be repaid at a specific time
A. borrowed capital B. demand C. equity capital D. capital financing
78. The certificate of indebtedness usually to mature in not less than 10 years is known as.
A. bad dept B. bond C. salvage value D. depletion
79. On a negotiable paper is the difference between the future worth and the present worth of a negotiable paper
A. bankruptcy B. fair value C. discount D. economic life
80. The analysis and evaluation of the factors that will affect the economic success of an engineering projects to the end that a recommendation
can be made which will ensure the best use of capital.
A. engineering economy B. accounting C. investment analysis D. economic life
81. The process of determining the value of a certain property for specific reasons.
A. bond B. annuity C. demand D. appraisal
82. The decrease in the value of a property due to gradual extraction of its contents.
A. depletion B. appraisal C. salvage D. market value
83. Funds supplied and used by owners of an enterprise in the expectation that a profit will be earned.
A. obsolescence B. depletion C. investment D. amortization
84. The quantity of a certain commodity that is bought at a certain price at a given place and time.
A. supply B. demand C. producer D. investment
85. The decrease in value of physical property due to passage of time.
A. bankruptcy B. depreciation C. market value D. salvage
86. The length of time during which the property be operated at a profit.
A. economic life B. obsolescence C. physical life D. fair value
87. The length of time during which it is capable of performing the function for which it was designed.
A. economic life B. physical life C. depletion D. interest
88. Products that are directly used by people to satisfy their wants.
A. engineering economy B. discount C. producer goods D. consumer goods
89. The price that can be obtained from the sale of a property as second hand.
A. depletion B. salvage C. appraisal D. amortization
90. The amount which a willing buyer will pay to a willing seller for a property which equal advantage and is under no compulsion to buy a or
sell.
A. salvage value B. appraisal C. market value D. annuity
91. Caused by either a lessening in the demand for the service rendered by the asset or the availability of more efficient asset which will operate
with lower out of pocket costs.
A. present worth B. depreciation C. demand D. obsolescence
92. The some of the first cost of any property of replacement, operation and maintenance for a long time for a long time of forever.
A. physical life B. fair value C. appraisal D. present worth
93. The value of the variable for which the costs for the alternative will be equal.
A. bankruptcy B. break-even point C. salvage value D. investment
94. The value which is usually determined by a disinterested third party in order to establish a price that is fair to both seller and buyer.
A. investment B. salvage value C. fair value D. market
95. The difference between the book value and actual lower resale value is.
A. sunk cost B. salvage value C. fixed cost D. resale value
96. It occurs when a unique product or service is available only from a single supplier and entry of all other possible suppliers prevented.
A. inventory B. monopoly C. competition D. profitability
97. The ratio of annual revenues to the annual expenses.
A. benefit B. benefit-cost-ratio C. rate of return D. benefit ratio
98. The funds that are required to make the enterprise or project a going concern.
A. banking B. working capital C. accumulated amount D. principal or present worth
99. Worth of the property as shown in the accounting records of an enterprise.
A. fair value B. market C. use value D. book value
100. Gross profit, sales less cost of goods sold, as percentage of sales.
A. profit margin B. gross margin C. rate of investment D. price earnings
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