4

# With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

Decreases

Increases

Increases linearly

Remain constant

A. Decreases

4

# The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the

Initial cost

Book value at the end of (n - 1)th year

Depreciation during the (n - 1)th year

Difference between initial cost and salvage value

4

(1 + i)n/S

S/(1 + i)n

S/(1 + in)

S/(1 + n)i

4

# If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is

R [{(1 + i)n - 1}/ i ]

R [{(1 + i)n - 1}/ i (1 + i)n]

R(1 + i)n

R/(1 + i)n

4

# With increase in the discounted cash flow rate of return, the ratio of the total present value to the initial investment of a given project

Decreases

Increases

Increases linearly

Remain constant

4

300

600

800

1000

4

# Pick out the wrong statement.

Gross revenue is that total amount of capital received as a result of the sale of goods or service

Net revenue is the total profit remaining after deducting all costs excluding taxes

The ratio of immediately available cash to the total current liabilities is known as the cash ratio

Consolidated income statement based on a given time period indicates surplus capital and shows the relationship among total income, costs & profit over the time interval

4

# A series of equal payments (e.g., deposit or cost) made at equal intervals of time is known as

Perpetuity

Capital charge factor

Annuity

Future worth

4

# Scheduling provides information about the

Proper utilisation of machines

Means to minimise idle time for machines

Time of completion of job

Time of starting of job and also about how much work should be completed during a particular period

4

One

Three

Six

Twelve

4

# Factory manufacturing cost is the sum of the direct production cost

Fixed charges and plant overhead cost

None of these

4

# Which of the following is the cheapest material of construction for the storage of sodium hydroxide upto a concentration of 75%?

Stainless steel

Plain carbon steel

Nickel

Copper

4

# Which of the following is not a current asset of a chemical company?

Inventories

Marketable securities

Chemical equipments

None of these

4

# Pick out the wrong statement.

Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity)

Return on equity = profit after tax/net worth

Working capital turnover ratio = sales/net working capital

Total cost of production is more than net sales realisation (NSR) at breakeven point

4

# Depreciation

Costs (on annual basis) are constant when the straight line method is used for its determination

Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time

Does figure in the calculation of income tax liability on cash flows from an investment

All (A), (B) and (C)

4

# Gross earning is equal to the total income minus

Total product cost

Fixed cost

Income tax

None of these

4

General expenses

R & D cost

None of these

4

15%

10%

1.5%

150%

4

5 years

7 years

12 years

10 years

4

Linearly

Non-linearly

Exponentially

Logarithmically

4

# Generally, income taxes are based on the

Total income

Gross earning

Total product cost

Fixed cost

4

Annually

Fortnightly

Monthly

Half-yearly

4

Fixed

Utilities

Capital

4

# Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used.

Straight line

Sinking fund

Present worth

Declining balance

4

# Expenditure on research and development (R & D) is categorised as the __________, while making an estimate of the total product cost for a chemical plant.

Fixed expenses

General expenses

Direct production cost

4

# Which of the following elements is not included in the scope of market analysis?

Competition from other manufactures

Product distribution

Opportunities

Economics

4

# Out of the following, the depreciation calculated by the __________ method is the maximum.

Diminishing balance

Straight line

Sum of the years digit

Sinking fund

4

# Pick out the correct statement.

Difference between income and expense is termed as gross revenue

Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to date

Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the investment

Scrap value is the net amount of money obtainable from the sale of used property over and above any charges involved in its removal & sale

4

Warehousing

Legal fees

Customer service

4

# An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be

1000 (1 + 0.1/4)20

1000 (1 + 0.1)20

1000 (1 + 0.1/4)5

1000 (1 + 0.1/2)5