McqMate
Chapters
| 1. |
As per Accounting Standard-3, Cash Flow is classified into |
| A. | Operating activities and investing activities |
| B. | Investing activities and financing activities |
| C. | Operating activities and financing activities |
| D. | Operating activities, financing activities and investing activities |
| Answer» D. Operating activities, financing activities and investing activities | |
| 2. |
Cash Flow Statement is also known as |
| A. | Statement of Changes in Financial Position on Cash basis |
| B. | Statement accounting for variation in cash |
| C. | Both a and b |
| D. | None of the above. |
| Answer» C. Both a and b | |
| 3. |
The objectives of Cash Flow Statement are |
| A. | Analysis of cash position |
| B. | Short-term cash planning |
| C. | Evaluation of liquidity |
| D. | Comparison of operating Performance |
| Answer» D. Comparison of operating Performance | |
| 4. |
In cash flow statement, the item of interest is shown in A) Operating Activities B) Financing Activities C) Investing Activities |
| A. | Both A and B |
| B. | Both A and C |
| C. | Both B and C |
| D. | A, B, C |
| Answer» C. Both B and C | |
| 5. |
Cash Flow Statement is based upon |
| A. | Cash basis of accounting |
| B. | Accrual basis of accounting |
| C. | Credit basis of accounting |
| D. | None of the above |
| Answer» A. Cash basis of accounting | |
| 6. |
Which of the following statements are false? A) Cash Flow Statement is helpful in the formation of policies. B) Cash Flow Statement is useful for external analysis C) Cash Flow Statement is helpful in estimating future cash flow |
| A. | Both A and B |
| B. | Both A and C |
| C. | Both B and C |
| D. | None of the above |
| Answer» D. None of the above | |
| 7. |
Which of the following statements are true? |
| A. | Cash flow reveals only the inflow of cash |
| B. | Cash flow reveals only the outflow of cash |
| C. | Cash flow is a substitute for income statement |
| D. | Cash flow statement is not a replacement of funds flow statement. |
| Answer» D. Cash flow statement is not a replacement of funds flow statement. | |
| 8. |
Cash flow statement is based upon _________ while Funds Flow Statement recognizes _______. |
| A. | Cash basis of accounting, accrual basis of accounting |
| B. | Accrual basis of accounting, cash basis of accounting |
| C. | Both are based on cash basis of accounting |
| D. | None of the above |
| Answer» A. Cash basis of accounting, accrual basis of accounting | |
| 9. |
Statement of changes in working capital is prepared separately in |
| A. | Cash Flow Statement |
| B. | Funds Flow Statement |
| C. | Both a and b |
| D. | None of the above |
| Answer» B. Funds Flow Statement | |
| 10. |
Cash Flow Statement studies causes of change in working capital. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 11. |
_________ reconciles the opening cash balance with the closing cash balance of a given period on the basis of net decrease or increase in cash during that period. |
| A. | Cash Flow Statement |
| B. | Funds Flow Statement |
| C. | Both a and b |
| D. | None of the above |
| Answer» A. Cash Flow Statement | |
| 12. |
Which of the following statements are true? A) Cash flow statement is more useful for short term cash planning. B) Funds Flow statement is more useful in planning medium term and long term financing. C) Cash Flow statement discloses the position of liquidity in a better way |
| A. | Only A |
| B. | Only B |
| C. | Only C |
| D. | A, B and C |
| Answer» D. A, B and C | |
| 13. |
_____ has/have accepted cash flow statement is more useful than funds flow statement, particularly from view of analysis of liquidity of a firm. |
| A. | Institute Of Chartered Accountants of India |
| B. | FASB, America |
| C. | SEBI |
| D. | All of the above |
| Answer» D. All of the above | |
| 14. |
Time value of money indicates that |
| A. | A unit of money obtained today is worth more than a unit of money obtained in future |
| B. | A unit of money obtained today is worth less than a unit of money obtained in future |
| C. | There is no difference in the value of money obtained today and tomorrow |
| D. | None of the above |
| Answer» A. A unit of money obtained today is worth more than a unit of money obtained in future | |
| 15. |
Time value of money supports the comparison of cash flows recorded at different time period by |
| A. | Discounting all cash flows to a common point of time |
| B. | Compounding all cash flows to a common point of time |
| C. | Using either a or b |
| D. | None of the above. |
| Answer» C. Using either a or b | |
| 16. |
If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be: |
| A. | 10% per annum |
| B. | 10.10 per annum |
| C. | 10.25%per annum |
| D. | 10.38% per annum |
| Answer» D. 10.38% per annum | |
| 17. |
Relationship between annual nominal rate of interest and annual effective rate of interest, if frequency of compounding is greater than one: |
| A. | Effective rate > Nominal rate |
| B. | Effective rate < Nominal rate |
| C. | Effective rate = Nominal rate |
| D. | None of the above |
| Answer» A. Effective rate > Nominal rate | |
| 18. |
Mr. X takes a loan of Rs 50,000 from HDFC Bank. The rate of interest is 10% per annum. The first installment will be paid at the end of year 5. Determine the amount of equal annual installments if Mr. X wishes to repay the amount in five installments. |
| A. | Rs 19500 |
| B. | Rs 19400 |
| C. | Rs 19310 |
| D. | None of the above |
| Answer» C. Rs 19310 | |
| 19. |
If nominal rate of return is 10% per annum and annual effective rate of interest is 10.25% per annum, determine the frequency of compounding: |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | None of the above |
| Answer» B. 2 | |
| 20. |
Present value tables for annuity cannot be straight away applied to varied stream of cash flows. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» A. True | |
| 21. |
Heterogeneous cash flows can be made comparable by |
| A. | Discounting technique |
| B. | Compounding technique |
| C. | Either a or b |
| D. | None of the above |
| Answer» C. Either a or b | |
| 22. |
The term marginal cost can be used as a substitute of variable cost while measuring Contribution. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» A. True | |
| 23. |
Determine total as well as per unit contribution if Sales is Rs 40,000, Sales in units is 4,000 and variable cost is Rs 30,000. |
| A. | Rs 10,000 and Rs 2.5 |
| B. | Rs 70,000 and Rs 3.5 |
| C. | Rs 36,000 and Rs 3.6 |
| D. | None of the above |
| Answer» A. Rs 10,000 and Rs 2.5 | |
| 24. |
Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%. |
| A. | Rs 60,000 |
| B. | Rs 70,000 |
| C. | Rs 30,000 |
| D. | None of the above |
| Answer» A. Rs 60,000 | |
| 25. |
Determine Contribution if Fixed cost is Rs 40,000 and profit is Rs 30,000. |
| A. | Rs 60,000 |
| B. | Rs 70,000 |
| C. | Rs 30,000 |
| D. | None of the above |
| Answer» B. Rs 70,000 | |
| 26. |
Determine Contribution if Fixed cost is Rs 50,000 and loss is Rs 20,000. |
| A. | Rs 60,000 |
| B. | Rs 70,000 |
| C. | Rs 30,000 |
| D. | None of the above |
| Answer» C. Rs 30,000 | |
| 27. |
Contribution and profit both are same concepts. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 28. |
Which of the following statements are true? |
| A. | Contribution doesn’t include fixed cost whereas profit includes fixed cost. |
| B. | Contribution is not based on the concept of marginal cost. |
| C. | Contribution above breakeven point becomes profit. |
| D. | All of the above |
| Answer» C. Contribution above breakeven point becomes profit. | |
| 29. |
Profit-Volume ratio is also known as |
| A. | Contribution ratio |
| B. | Contribution/Sales ratio |
| C. | Marginal Income percentage |
| D. | All of the above |
| Answer» D. All of the above | |
| 30. |
Which of the following statements are true? |
| A. | P/V Ratio can never be used to measure break-even point |
| B. | Higher the P/V ratio less will be the profit and vice versa |
| C. | Concept of P/V ratio is also used to determine profit at a given volume of sales |
| D. | All of the above |
| Answer» C. Concept of P/V ratio is also used to determine profit at a given volume of sales | |
| 31. |
The P/V ratio can be improved by |
| A. | Decreasing the selling price per unit |
| B. | Increasing variable cost |
| C. | Changing the sales mix |
| D. | None of the above |
| Answer» C. Changing the sales mix | |
| 32. |
The Break-even Point of a company is that level of sales income which will equal the sum of its fixed cost. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» A. True | |
| 33. |
Which of the following are characteristics of B.E.P? |
| A. | There is no loss and no profit to the firm. |
| B. | Total revenue is equal to total cost. |
| C. | Contribution is equal to fixed cost. |
| D. | All of the above. |
| Answer» D. All of the above. | |
| 34. |
Which of the following are assumptions for break-even analysis? |
| A. | Elements of cost cannot be divided in different groups. |
| B. | Fixed cost remains certain from zero production to full capacity. |
| C. | Behavior of different costs is linear |
| D. | Selling per price unit remains constant. |
| Answer» B. Fixed cost remains certain from zero production to full capacity. | |
| 35. |
While measuring break-even analysis, it is considered that during a specific period there will be no change in general price level, i.e., labor, cost of material and other overheads. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» A. True | |
| 36. |
Which of the following are limitations of break-even analysis? |
| A. | Static concept |
| B. | Capital employed is taken into account. |
| C. | Limitation of non-linear behavior of costs |
| D. | Limitation of presence of perfect competition |
| Answer» A. Static concept | |
| 37. |
Break-even analysis is used in “Make or Buy” decision. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» A. True | |
| 38. |
Using equation method, Break-even point is calculated as |
| A. | Sales = Variable expenses + Fixed expenses + Profit |
| B. | Sales = Variable expenses + Fixed expenses - Profit |
| C. | Sales = Variable expenses - Fixed expenses + Profit |
| D. | None of the above |
| Answer» A. Sales = Variable expenses + Fixed expenses + Profit | |
| 39. |
Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost is Rs 5,000. What is break-even point? |
| A. | 500 units |
| B. | 1,000 units |
| C. | 1,250 units |
| D. | None of the above |
| Answer» C. 1,250 units | |
| 40. |
Contribution is also known as |
| A. | Contribution margin |
| B. | Net Margin |
| C. | Both a and b |
| D. | None of the above |
| Answer» A. Contribution margin | |
| 41. |
Given selling price is Rs 20 per unit, variable cost is Rs 16 per unit contribution is |
| A. | Rs 1.25 per unit |
| B. | Rs 4 per unit |
| C. | Rs 0.8 per unit |
| D. | None of the above |
| Answer» B. Rs 4 per unit | |
| 42. |
Risk of two securities with different expected return can be compared with: |
| A. | Coefficient of variation |
| B. | Standard deviation of securities |
| C. | Variance of Securities |
| D. | None of the above |
| Answer» A. Coefficient of variation | |
| 43. |
A portfolio having two risky securities can be turned risk less if |
| A. | The securities are completely positively correlated |
| B. | If the correlation ranges between zero and one |
| C. | The securities are completely negatively correlated |
| D. | None of the above. |
| Answer» C. The securities are completely negatively correlated | |
| 44. |
Efficient frontier comprises of |
| A. | Portfolios that have negatively correlated securities |
| B. | Portfolios that have positively correlated securities |
| C. | Inefficient portfolios |
| D. | Efficient portfolios |
| Answer» D. Efficient portfolios | |
| 45. |
Efficient portfolios can be defined as those portfolios which for a given level of risk provides |
| A. | Maximum return |
| B. | Average return |
| C. | Minimum return |
| D. | None of the above |
| Answer» A. Maximum return | |
| 46. |
Capital market line is: |
| A. | Capital allocation line of a market portfolio |
| B. | Capital allocation line of a risk free asset |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 47. |
CAPM accounts for: |
| A. | Unsystematic risk |
| B. | Systematic risk |
| C. | Both a and b |
| D. | None of the above |
| Answer» B. Systematic risk | |
| 48. |
The point of tangency between risk return indifferences curves and efficient frontier highlights: |
| A. | Optimal portfolio |
| B. | Efficient portfolio |
| C. | Sub-optimal portfolio |
| D. | None of the above |
| Answer» C. Sub-optimal portfolio | |
| 49. |
Return on any financial asset consists of capital yield and current yield. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» A. True | |
| 50. |
There is no difference between the capital market line and security market line as both the terms are same. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 51. |
Risk in Capital budgeting implies that the decision-maker knows___________of the cash flows. |
| A. | Variability, |
| B. | Probability, |
| C. | Certainty, |
| D. | None of the above |
| Answer» B. Probability, | |
| 52. |
In Certainty-equivalent approach, adjusted cash flows are discounted at: |
| A. | Accounting Rate of Return, |
| B. | Internal Rate of Return, |
| C. | Hurdle Rate, |
| D. | Risk-free Rate |
| Answer» D. Risk-free Rate | |
| 53. |
Risk in Capital budgeting is same as: |
| A. | Uncertainty of Cash flows, |
| B. | Probability of Cash flows, |
| C. | Certainty of Cash flows, |
| D. | Variability of Cash flows |
| Answer» D. Variability of Cash flows | |
| 54. |
Which of the following is a risk factor in capital budgeting? |
| A. | Industry specific risk factors, |
| B. | Competition risk factors, |
| C. | Project specific risk factors, |
| D. | All of the above |
| Answer» D. All of the above | |
| 55. |
In Risk-Adjusted Discount Rate method, the normal rate of discount is: |
| A. | Increased, |
| B. | Decreased, |
| C. | Unchanged, |
| D. | None of the above |
| Answer» A. Increased, | |
| 56. |
In Risk-Adjusted Discount Rate method, which one is adjusted? |
| A. | Cash flows, |
| B. | Life of the proposal, |
| C. | Rate of discount, |
| D. | Salvage value |
| Answer» C. Rate of discount, | |
| 57. |
NPV of a proposal, as calculated by RADR real CE Approach will be: |
| A. | Same, |
| B. | Unequal, |
| C. | Both (a) and (b), |
| D. | None of (a) and (b) |
| Answer» B. Unequal, | |
| 58. |
Risk of a Capital budgeting can be incorporated |
| A. | Adjusting the Cash flows, |
| B. | Adjusting the Discount Rate, |
| C. | Adjusting the life, |
| D. | All of the above |
| Answer» D. All of the above | |
| 59. |
Which element of the basic NPV equation is adjusted by the RADR? |
| A. | Denominator, |
| B. | Numerator, |
| C. | Both, |
| D. | None |
| Answer» A. Denominator, | |
| 60. |
In CE Approach, the CE Factors for different years are: |
| A. | Generally increasing, |
| B. | Generally decreasing, |
| C. | Generally same, |
| D. | None of the above |
| Answer» B. Generally decreasing, | |
| 61. |
Which of the following is correct for RADR? |
| A. | Accept a project if NPV at RADR is negative, |
| B. | Accept a project if IRR is more than RADR |
| C. | RADR is overall cost of capital plus risk-premium , |
| D. | All of the above. |
| Answer» C. RADR is overall cost of capital plus risk-premium , | |
| 62. |
In Playback Period approach to risk the target payback period is |
| A. | Not adjusted, |
| B. | Adjusted upward, |
| C. | Adjusted downward , |
| D. | (b) or c |
| Answer» C. Adjusted downward , | |
| 63. |
In Sensitivity Analysis, the emphasis is on assessment of sensitivity of |
| A. | Net Economic Life, |
| B. | Net Present Value, |
| C. | Both (a) and (b), |
| D. | None of (a) and (b) |
| Answer» B. Net Present Value, | |
| 64. |
Most Sensitive variable as given by the Sensitivity Analysis should be: |
| A. | Ignored, |
| B. | Given Least important, |
| C. | Given the maximum importance, |
| D. | None of the above |
| Answer» C. Given the maximum importance, | |
| 65. |
Expected Value of Cashflow, EVCF, is: |
| A. | Certain to occur, |
| B. | Most likely Cashflows, |
| C. | Arithmetic Average Cashflow, |
| D. | Geometric Average Cashflow |
| Answer» B. Most likely Cashflows, | |
| 66. |
Concept of joint probability is used in case of: |
| A. | Independent Cashflows, |
| B. | Uncertain Cashflows, |
| C. | Dependent Cashflows, |
| D. | Certain Cashflows |
| Answer» C. Dependent Cashflows, | |
| 67. |
Decision-tree approach is used in: |
| A. | Proposals with longer life, |
| B. | Sequential decisions, |
| C. | Independent Cashflows, |
| D. | Accept-Reject Proposal |
| Answer» B. Sequential decisions, | |
| 68. |
In a cash flow series: |
| A. | Uniform gradient signifies that an income or disbursement changes by the same amount in each interest period |
| B. | Either an increase or decrease in the amount of a cash flow is called the gradient |
| C. | The gradient in the cash flow may be positive or negative |
| D. | All of these |
| Answer» D. All of these | |
| 69. |
In a cash-flow diagram: |
| A. | Time 0 is considered to be the present |
| B. | Time 1 is considered to be the end of time period 1 |
| C. | A vertical arrow pointing up indicates a positive cash flow |
| D. | All of these |
| Answer» D. All of these | |
| 70. |
Which method is adopted to develop an approximate or conceptual estimate for perimeter works for buildings from the following? |
| A. | Base unit method |
| B. | Cost per function method |
| C. | Cost per square metre method |
| D. | Cost per linear metre method |
| Answer» D. Cost per linear metre method | |
| 71. |
Pick up the correct statement from the following: |
| A. | The ratio of current assets, loans and advances, and the current liquidity is called current ratio |
| B. | Larger the current ratio, larger is the margin of safety |
| C. | The operating profit is the difference between gross profit and operating expenses |
| D. | All of these |
| Answer» D. All of these | |
| 72. |
The ratio of current assets to current liabilities is known as |
| A. | Liquidity ratio |
| B. | Current ratio |
| C. | Acid-Test (or Quick) ratio |
| D. | Debts ratio |
| Answer» B. Current ratio | |
| 73. |
In the cash-flow diagram shown in the given figure |
| A. | Equal deposits of Rs 3000 per year (A) are made, starting now |
| B. | The rate of interest is 10% per year account |
| C. | The amount accumulated after the seventh deposit is to be computed |
| D. | All of these |
| Answer» D. All of these | |
| 74. |
The more critical (or severe) test of the firm's liquidity can be judged by: |
| A. | Liquidity ratio |
| B. | Current ratio |
| C. | Acid-Test (or Quick) ratio |
| D. | Debts ratio |
| Answer» C. Acid-Test (or Quick) ratio | |
| 75. |
If interest is paid more than once in a year, ‘i’ is the rate of interest per year, ‘n’ is the number of periods in years and ‘m’ is a number of periods per years, compound amount factor (CAF) is: |
| A. | (1 + i/m)n |
| B. | (1 + i/n)m |
| C. | (1 + i/n)1/m |
| D. | (1 + i/m)1/n |
| Answer» A. (1 + i/m)n | |
| 76. |
Pick up the correct reason for making conceptual (or preliminary) estimate from the following: |
| A. | To have a check on a definitive cost estimate |
| B. | To check quotations from contractors and/or sub-contractors |
| C. | To compute target estimate for the owner while drawing and specifications are in initial stage |
| D. | All of these |
| Answer» D. All of these | |
| 77. |
Pick up the correct method adopted for developing the approximate or conceptual estimates from the following: |
| A. | Base unit method |
| B. | Cost per function method |
| C. | Cost per square metre |
| D. | All of these |
| Answer» D. All of these | |
| 78. |
Ratio analysis of a construction firm is used for analysis by: |
| A. | Share holders |
| B. | Firm's management |
| C. | Banks of the firm |
| D. | Financial analysts |
| Answer» D. Financial analysts | |
| 79. |
Current assets less inventories divided by current liabilities is known as |
| A. | Liquidity ratio |
| B. | Current ratio |
| C. | Acid-Test (or Quick) ratio |
| D. | Debts ratio |
| Answer» C. Acid-Test (or Quick) ratio | |
| 80. |
Refer to the cash flow diagram of uniform gradient in a cash flow (in the given figure), the gradient is: |
| A. | Rs. 10000 per year |
| B. | Rs. 15000 per year |
| C. | Rs. 20000 per year |
| D. | Rs. 25000 per year |
| Answer» D. Rs. 25000 per year | |
| 81. |
Pick up the correct statement from the following: |
| A. | The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy |
| B. | The manifestation of the time value of money is termed as interest |
| C. | Interest on borrowing = present amount owed - original loan |
| D. | All of these |
| Answer» D. All of these | |
| 82. |
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 unrealistic 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 these |
| Answer» D. All of these | |
| 83. |
Both architect and engineer make use of the cost estimate of the project: |
| A. | For site selection |
| B. | For designing of the project |
| C. | For choosing alternatives |
| D. | All of these |
| Answer» D. All of these | |
| 84. |
Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following: |
| A. | Liquidity ratio |
| B. | Financial leverage ratio |
| C. | Activity ratio |
| D. | None of these |
| Answer» D. None of these | |
| 85. |
The interest calculated on the basis of 365 days a year, is known as: |
| A. | Interest |
| B. | Ordinary simple interest |
| C. | Exact simple interest |
| D. | None of these |
| Answer» C. Exact simple interest | |
| 86. |
The project contractor relies on the cost of the estimate: |
| A. | For submission of a competitive bid for a lump-sum contract |
| B. | For a unit price contract |
| C. | For preparation of a definitive estimate to help negotiate contract |
| D. | All of these |
| Answer» D. All of these | |
| 87. |
If a seller recovers his capital along with accumulated compensating interest not in one single lump-sum payment but in periodical equal payments, over time: |
| A. | Capital Recovery Annuity fs availed |
| B. | Present work Annuity is availed |
| C. | Sinking Fund Annuity is availed |
| D. | Sinking Fund Annuity is availed |
| Answer» A. Capital Recovery Annuity fs availed | |
| 88. |
Pick up the correct statement from the following: |
| A. | An annuity is a series of equal payments occurring at equal period of time |
| B. | Annuity is called an equal payment or uniform payment series |
| C. | An annuity may have periods of time of any length but should always be of equal length |
| D. | All the above |
| Answer» D. All the above | |
| 89. |
The sunk costs include: |
| A. | A past expenditure |
| B. | An unrecovered balance |
| C. | An invested capital that cannot be retrieved |
| D. | All of these |
| Answer» D. All of these | |
| 90. |
Pick up the element of the cost from the following: |
| A. | Direct material |
| B. | Direct labour |
| C. | Over head |
| D. | All of these |
| Answer» D. All of these | |
| 91. |
The ratio obtained by dividing 'quick assets' by current liabilities is called |
| A. | Turnover ratio |
| B. | Acid test ratio |
| C. | Solvency ratio |
| D. | None of these |
| Answer» B. Acid test ratio | |
| 92. |
The construction estimate of a project is used by: |
| A. | The owner of the facility |
| B. | The consulting architect/engineer |
| C. | The contractor of the project |
| D. | All of these |
| Answer» D. All of these | |
| 93. |
Pick up the correct statement from the following: |
| A. | The ratios which show profitability in relation to sales and those which show profitability in relation to investment are called profitability ratios |
| B. | The ratio of gross profit and net sales is called profitability in relation to sales ratio |
| C. | The ratio of net profit after taxes to total assets is known as profitability in relation to investment ratio |
| D. | All of these |
| Answer» D. All of these | |
| 94. |
The product of CAF (S P) and PWF (S P) is: |
| A. | 1/2 |
| B. | 1 |
| C. | 1/3 |
| D. | ¼ |
| Answer» B. 1 | |
| 95. |
Which one of the following is not a construction estimate? |
| A. | Initial feasibility estimate |
| B. | Conceptual preliminary budget |
| C. | Definite estimate |
| D. | None of these |
| Answer» D. None of these | |
| 96. |
If ‘P’ is principal amount, ‘I’ is the rate of interest per annum and ‘n’ is the number of periods in years, the compound amount factor (CAF) is: |
| A. | (1 + i)n |
| B. | (1 + i)(1/2n) |
| C. | v(n + i) |
| D. | None of these |
| Answer» A. (1 + i)n | |
| 97. |
If ‘P’ is principal amount, ‘i’ is the rate of interest and ‘n’ is the number of periods in years, then the interest factor is: |
| A. | (1 + ni) |
| B. | (ni - 1) |
| C. | ni |
| D. | None of these |
| Answer» A. (1 + ni) | |
| 98. |
Pick up the main purpose of project cost control from the following: |
| A. | To signal immediate warning of uneconomic operations |
| B. | To provide a feed back to the estimator |
| C. | To promote cost consciousness |
| D. | All of these |
| Answer» D. All of these | |
| 99. |
Pick up the correct statement from the following: |
| A. | A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed |
| B. | In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project |
| C. | As the discount rate increases, the net present value profile slopes downward to the right |
| D. | All of these |
| Answer» D. All of these | |
| 100. |
If ‘a’ is the base amount expenditure, ‘b’ is the increase in the operation cost each year over a period of’ 'n’ years, the total cost of maintenance is: |
| A. | a + (n + 1) b |
| B. | a + (n - 1) b |
| C. | a × (n - 1) b |
| D. | a - (n - 1) b |
| Answer» B. a + (n - 1) b | |
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