McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Computer Science Engineering (CSE) .
| 401. |
Consider a project with a first cost (investment) of $250,000, an annual O&M cost of $50,000, annual revenue of $160,000, and a salvage value of $40,000 after a 10-year life. Find the annual worth of the project assuming an interest of 13% per year. |
| A. | 35867 |
| B. | 81000 |
| C. | 82445 |
| D. | 66099 |
| Answer» D. 66099 | |
| 402. |
Find the annual equivalent worth for the following infinite cash flow series at an interest rate of 10%: |
| A. | 461.2 |
| B. | 445.2 |
| C. | 985.4 |
| D. | 438.6 |
| Answer» D. 438.6 | |
| 403. |
Your firm has purchased an injection molding machine at a cost of $100,000. The machine’s useful life is estimated at 8 years. Your accounting department has estimated the capital cost for this machine at about $25,455 per year. If your firm’s MARR is 20%, how much salvage value do you think the accounting department assumed at the end of 8 years? |
| A. | 12000 |
| B. | 9000 |
| C. | 10000 |
| D. | 11000 |
| Answer» C. 10000 | |
| 404. |
You just purchased a pin inserting machine to relieve some bottleneck problems that have been created in manufacturing a PC board. The machine cost $56,000 and has an estimated service life of 5 years. At that time, the estimated salvage value would be $5,000. The machine is expected to operate 2,500 hours per year. The expected annual operating and maintenance cost would be $6,000. If your firm’s interest rate is 15%, what would be the machine cost per hour? |
| A. | 8.79 |
| B. | 7.85 |
| C. | 11.85 |
| D. | 5.89 |
| Answer» A. 8.79 | |
| 405. |
The following infinite cash flow series has a rate of return of 10%. Determine the unknown value of X. |
| A. | 120 |
| B. | 100 |
| C. | 82 |
| D. | 90 |
| Answer» D. 90 | |
| 406. |
An asset with a first cost of $100,000 is depreciated over 5-year period. It is expected to have a $10,000 salvage value at the end of 5 years. Using the straight-line method, what is the book value at the end of year 2? |
| A. | 82000 |
| B. | 90000 |
| C. | 64000 |
| D. | 60000 |
| Answer» C. 64000 | |
| 407. |
The rate of tax that is leivable on STCG
|
| A. | 0.1 |
| B. | 0.15 |
| C. | 0.2 |
| D. | 0.3 |
| Answer» B. 0.15 | |
| 408. |
For an employee in receipt of hostel expenditure allowance for his three children, the maximum annual allowance exempt under section 10(14) is .... |
| A. | rs.10, 800 |
| B. | rs.7,200 |
| C. | rs.9,600 |
| D. | rs.3,600 |
| Answer» B. rs.7,200 | |
| 409. |
For an industrial undertaking fulfilling the conditions, additional depreciation in respect of a machinery costing Rs.10 lakh acquired and installed on October 3, 2005 is |
| A. | rs.75,000 |
| B. | rs.1,50,000 |
| C. | rs.1,00,000 |
| D. | none of the above |
| Answer» C. rs.1,00,000 | |
| 410. |
A new business was set up on15-11-2008 and it commenced its business from 1-12-2008. The first previous year in this case shall be: |
| A. | 15-11-2008 to 31-3-2009 |
| B. | 1-12-2008 to 31-3-2009 |
| C. | 2008-2009 |
| D. | none of the above |
| Answer» A. 15-11-2008 to 31-3-2009 | |
| 411. |
A person leaves India permanently on 15-11-2008.The assessment year for income earned till 15-11-2008 in this case shall be : |
| A. | 2007-08 |
| B. | 2008-09 |
| C. | 2009-10 |
| D. | none of the above |
| Answer» B. 2008-09 | |
| 412. |
Group of assets falling within a class of assets
|
| A. | a. group of assets |
| B. | b. block of assets |
| C. | c. set of assets |
| D. | d. none of these |
| Answer» B. b. block of assets | |
| 413. |
Depreciation available, if asset is used for less than 180 days during the year of acquisition shall be of block rate: |
| A. | 50% |
| B. | 20% |
| C. | 100% |
| D. | 15% |
| Answer» A. 50% | |
| 414. |
If the Plant & Machinery is used for less than 180 days in the year of its acquisition, then, at what rate the depreciation on that asset should be provided under section 32? |
| A. | 7.5% |
| B. | 15% |
| C. | 20% |
| D. | 10% |
| Answer» A. 7.5% | |
| 415. |
If the Computer is purchased on 11th May, 2018 then at what rate depreciation will be provided on it? |
| A. | 60% |
| B. | 40% |
| C. | 30% |
| D. | 20% |
| Answer» B. 40% | |
| 416. |
If the machinery is purchased on 4th October, 2018 then at what rate depreciation will be provided on it? |
| A. | 60% |
| B. | 7.5% |
| C. | 15% |
| D. | 10% |
| Answer» B. 7.5% | |
| 417. |
The transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in the sale is known as : |
| A. | lump sum sale |
| B. | slump sale |
| C. | aggregate sale |
| D. | total sale |
| Answer» B. slump sale | |
| 418. |
What is the rate of depreciation charged on computer software? |
| A. | 40% |
| B. | 15% |
| C. | 60% |
| D. | 100% |
| Answer» B. 15% | |
| 419. |
_______Rate of depreciation chargeable on fully temporary wooden structure for the assessment year 2019-20 is |
| A. | 5% |
| B. | 10% |
| C. | 100% |
| D. | 40% |
| Answer» D. 40% | |
| 420. |
Rate of depreciation chargeable on temporary wooden structure for the assessment year 2019- 20 is |
| A. | 40% |
| B. | 10% |
| C. | 100% |
| D. | 50% |
| Answer» A. 40% | |
| 421. |
DS acquired a building for Rs. ` 15 lakh in June, 2016 in addition to cost of land beneath the building of ` 3 lakh. It was used for personal purposes until he commenced business in June, 2018 and since then it was used for business purposes. The amount of depreciation eligible in his case for the assessment year 2019-20 would be - |
| A. | rs.1,50,000 |
| B. | rs.75,000 |
| C. | rs.37,500 |
| D. | rs.1,21,500 |
| Answer» C. rs.37,500 | |
| 422. |
XYZ Ltd is engaged in production of textile articles. Opening WDV of the block of assets was Rs.` 15, 00,000. During the year, plant was acquired under this block on 15th June 2018 amounting to Rs.` 10, 00,000. One of the asset falling within the block was sold for Rs. ` 5, 50,000 on 14-01- 2019. Rate of depreciation of the block is 15%. Calculate the total amount of depreciation including additional depreciation available during the previous year for the block. c |
| A. | rs.` 2,92,500 |
| B. | rs.`4,92,500 |
| C. | rs.` 3,92,500 88 |
| D. | rs.` 3,52,500 |
| Answer» B. rs.`4,92,500 | |
| 423. |
What is the rate of depreciation charged on computer software? |
| A. | 40% |
| B. | 15% |
| C. | 60% |
| D. | 100% |
| Answer» A. 40% | |
| 424. |
Your accounting records indicate that an asset in use has a book value of $8,640. The asset cost $30,000 when it was purchased, and it has been depreciated under the 5 MACRS method. Based on the information available, determine how many years the asset has been in service. |
| A. | 5 years |
| B. | 6 years |
| C. | 4 years |
| D. | 3 years |
| Answer» D. 3 years | |
| 425. |
Which of the following statements is correct? |
| A. | the reason why the u.s. congress allows business to use macrs depreciation as opposed to conventional methods is to reduce the business tax burden over the project life. |
| B. | under the declining balance depreciation system, it is always desirable to switch to straight line depreciation. |
| C. | when determining the cost basis for an asset’s depreciation, you must include all the costs that were incurred to keep the asset in operable condition. |
| D. | the main reason why a typical firm may use a straight line depreciation method in reporting an income to outside investors (as opposed to any other accelerated tax depreciation methods) is to abide by the accounting principle—that is to report the true cost of doing business. |
| Answer» C. when determining the cost basis for an asset’s depreciation, you must include all the costs that were incurred to keep the asset in operable condition. | |
| 426. |
Which of the following statements is correct? |
| A. | over a project’s life, a typical business will generate a greater amount of total project cash flows (undiscounted) if a faster depreciation method is adopted. |
| B. | no matter which depreciation method you adopt, total tax obligations over a project’s life remain unchanged. |
| C. | depreciation recapture equals cost basis minus an asset’s book value at the time of disposal, that is, if the salvage value is less than the asset’s cost basis. |
| D. | cash flows normally include depreciation expenses since they represent a cost of doing business. |
| Answer» B. no matter which depreciation method you adopt, total tax obligations over a project’s life remain unchanged. | |
| 427. |
You purchased a computer system which cost $50,000 5 years ago. At that time, the system was estimated to have a service life of 5 years with salvage value of $5,000. These estimates are still good. The property has been depreciated according to a 5 year MACRS property class. Now (at the end of year 5 from purchase) you are considering selling the computer at $10,000. What book value should you use in determining the taxable gains? |
| A. | 8640 |
| B. | 5760 |
| C. | 10368 |
| D. | 11520 |
| Answer» B. 5760 | |
| 428. |
Gilbert Corporation had a gross income of $500,000 in tax year 1, $150,000 in salaries, $30,000 in wages, $20,000 in interest, and $60,000 in depreciation expenses for an asset purchased 3 years ago. Ajax Corporation has a gross income of $500,000 in tax year 1, and $150,000 in salaries, $90,000 in wages, and $20,000 in interest expenses. Apply the current tax rates and determine which of the following statements is correct. |
| A. | both corporations will pay the same amount of income taxes in year 1. |
| B. | both corporations will have the same amount of net cash flows in year 1. |
| C. | ajax corporation will have a larger net cash flow than gilbert in year 1. |
| D. | gilbert corporation will have a larger taxable income than ajax corporation in year 1. |
| Answer» C. ajax corporation will have a larger net cash flow than gilbert in year 1. | |
| 429. |
A company purchased an industrial fork-lift for $75,000 in year 0. The company expects to use it for the next 7 years after which it plans to sell it for $10,000. The estimated gross income and expenses excluding depreciation for the first year are given below. The fork-lift will be depreciated according to a 5-year MACRS.:Determine the average tax rate applicable in the first year of operation, using the current corporate tax rate schedule. |
| A. | 0.1875 |
| B. | 0.1731 |
| C. | 0.25 |
| D. | 0.15 |
| Answer» B. 0.1731 | |
| 430. |
What effect would have on the break-even point and expected profit if there is an increase in fixed cost? |
| A. | (decrease, decrease) |
| B. | (increase, decrease) |
| C. | (increase, increase) |
| D. | (decrease, decrease) |
| Answer» B. (increase, decrease) | |
| 431. |
What effect would have on the break-even point and expected profit if there is an increase in labor cost? |
| A. | (decrease, decrease) |
| B. | (decrease, decrease) |
| C. | (increase, decrease) |
| D. | (increase, increase) |
| Answer» C. (increase, decrease) | |
| 432. |
What effect would have on the break-even point and expected profit if there is an increase in unit price? |
| A. | (increase, decrease) |
| B. | (decrease, decrease) |
| C. | (increase, increase) |
| D. | (decrease, increase) |
| Answer» B. (decrease, decrease) | |
| 433. |
What effect would have on the break-even point and expected profit if there is an increase in financing cost? |
| A. | (decrease, decrease) |
| B. | (increase, decrease) |
| C. | (increase, increase) |
| D. | (decrease, increase) |
| Answer» B. (increase, decrease) | |
| 434. |
What effect would have on the break-even point and expected profit if there is an increase in sales expense? |
| A. | (increase, increase) |
| B. | (decrease, decrease) |
| C. | (increase, decrease) |
| D. | (decrease, decrease) |
| Answer» C. (increase, decrease) | |
| 435. |
Which of the following statements is most correct? |
| A. | investment in working capital must be depreciated over the project life according to a straight-line method. |
| B. | if a project incurs an operating loss (a negative taxable income) during a typical tax year, the firm pays no income taxes during that year. |
| C. | whenever a project requires an investment in working capital, the profitability of the project will be affected negatively. |
| D. | all of the above |
| Answer» C. whenever a project requires an investment in working capital, the profitability of the project will be affected negatively. | |
| 436. |
Bureaucracy theory means |
| A. | the development of management functions and administrative principles |
| B. | a scientific study of work |
| C. | a hierarchy of command based on a rational-legal authority structure |
| D. | a shared responsibility of authority and delegation |
| Answer» C. a hierarchy of command based on a rational-legal authority structure | |
| 437. |
An in depth study on a single organisation using a variety of data collection methods is known as |
| A. | case study |
| B. | field survey |
| C. | field survey |
| D. | laboratory experiment |
| Answer» A. case study | |
| 438. |
The method of research that gathers data about perceptions, feelings, opinions through interviews and questionnaires in their actual work setting is known as |
| A. | case study |
| B. | field survey |
| C. | field experiment |
| D. | laboratory experiment |
| Answer» B. field survey | |
| 439. |
The consistency of data obtained from a particular research method is known as |
| A. | reliability |
| B. | validity |
| C. | credibility |
| D. | casuality |
| Answer» A. reliability | |
| 440. |
The degree to which a research method actually measures what it is supposed to measure is known as |
| A. | reliability |
| B. | validity |
| C. | credibility |
| D. | casuality |
| Answer» B. validity | |
| 441. |
A method of helping is to understand management and organisational behaviour is to look at that has been done before |
| A. | experiments |
| B. | research |
| C. | management |
| D. | behaviour |
| Answer» B. research | |
| 442. |
What must entrepreneurs and leaders learn in order to have a successful organisation? |
| A. | how to control people and manipulate organisational systems |
| B. | how to think strategically, influence people, develop organisational systems |
| C. | how to manage technical details and use current business jargon |
| D. | how to read balance sheets and income statements. |
| Answer» B. how to think strategically, influence people, develop organisational systems | |
| 443. |
Organisational success in providing a service or a product depends on |
| A. | doing product development faster than anyone else |
| B. | being the cheapest in the market |
| C. | having the first product or service in the market place |
| D. | the product or service being valued by a segment of society |
| Answer» D. the product or service being valued by a segment of society | |
| 444. |
An organisation's mission is |
| A. | the fundamental purpose of an organisation |
| B. | articulated in such a way that it defines the business of the enterprise |
| C. | a concept for unifying the efforts of organisational members |
| D. | all of the above |
| Answer» D. all of the above | |
| 445. |
Which must be accomplished first by the entrepreneur or leader? |
| A. | the design of a rational organisation structure |
| B. | generating profits |
| C. | making viable the concept for which the organisation was founded |
| D. | establishing policies that assure consistency of activities |
| Answer» C. making viable the concept for which the organisation was founded | |
| 446. |
Definable groups of people who have an economic and/or social interest in the organisation are called |
| A. | stakeholders |
| B. | employees |
| C. | managers |
| D. | all of the above |
| Answer» A. stakeholders | |
| 447. |
Governance policies, rules, as well as authority structures apply to which key resource element of the organisation? |
| A. | technology |
| B. | organisational culture |
| C. | organisation |
| D. | people |
| Answer» C. organisation | |
| 448. |
Productivity is a ratio of outputs (products or services) to . |
| A. | profits generated |
| B. | sales price |
| C. | inputs consumed |
| D. | behaviour effectiveness |
| Answer» C. inputs consumed | |
| 449. |
"Doing the right things" is referred to as . |
| A. | effectiveness |
| B. | efficiency |
| C. | productivity |
| D. | profitability |
| Answer» A. effectiveness | |
| 450. |
Revitalization involves the strategies, resources, technology, and skills of the organisation. |
| A. | focusing |
| B. | categorizing |
| C. | formalizing |
| D. | renewing |
| Answer» D. renewing | |
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