Q.1

The owner of the construction company makes use of the estimate :

  • to determine the capital investment costs.
  • to assist in financial arrangements
  • to determine economic feasibility of the project.
  • to determine the tax, insurance and evaluation purpose.
  • All of these
Q.2

Liquidity ratios are used :

  • to measure a firms ability to meet short-cut obligations.
  • to compare short term obligations to short-term resources available to meet these obligations.
  • to obtain much insight into the present cash solvency of the firm and the firm's ability to remain solvent in the event of adversity.
  • All of these
Q.3

A project construction cost estimate includes:

  • the labour and material cost
  • the equipment and over head cost
  • the profit of the contractor
  • All of these
Q.4

Which one of the following is not a construction estimate ?

  • Initial feasibility estimate
  • Conceptual preliminary budget
  • Definite estimate
  • None of these
Q.5

Earning per share is the most important ratio for

  • share holders
  • banks
  • company's management
  • All of these
Q.6

Pick up the correct statement from the following:

  • The difference between sales revenue and cost of goods sold, is known as 'Gross Profit.'
  • The gross profit percentage is the average profit margin obtained on goods sold.
  • The relationship of contribution to sales is known as contribution ratio
  • The difference between sales and variable cost of sales, is called contribution.
  • All of these
Q.7

Pick up the correct statement from the following:

  • The receipts and disbursements in a given time interval are referred to as cash flow.
  • The assumptions that all cash flows occur at the end of the interest period, is known as the end of period convention.
  • A cash flow diagram is a graphical representation of cash flows drawn on a time scale.
  • The cash flow diagram represents the statement of the problem and also includes what is given and what is to be found.
  • All of the above.
Q.8

Pick up the method used for project evaluation and selection in capital budgetting from the following:

  • pay back period
  • Internal ratio of return
  • Net present worth
  • Profitability index
  • All the above
Q.9

Pick up the main purpose of project cost control from the following :

  • To signal immediate warning of uneconomic operations
  • To provide a feed back to the estimator
  • To promote cost consciousness
  • All of these
Q.10

The person desires to pay off the amount inequal annual instalments. The amount of each instalment is :

  • Rs 5638
  • Rs 6638
  • Rs 7738
  • None of these
Q.11

Pick up the correct statement from the following:

  • The ratio of current assests, loans and advances, and the current liquidity is called current ratio.
  • Larger the current ratio, larger is the margin of safety.
  • The operating profit is the difference between gross profit and operating expenses.
  • All of these
Q.12

Renu Bala deposits Rsnow, Rstwo years from now and Rsfive years from now. If the savings bank's rate of interest in 5%, she will receive an amount of Rs Xyears from now, where X is

  • Rs 3415
  • Rs 4225
  • Rs 4413
  • Rs 4826
Q.13

Each financial ratio is generally compared by

  • a past ratio calculated from the past financial standard of the firm.
  • a ratio developed by using the projected financial statement of the firm.
  • a ratio of some selected firms most progressive and successful at the point of consideration.
  • All of these
Q.14

Renu Bala deposits Rsnow, Rstwo years from now and Rsfive years from now. If the savings bank's rate of interest in 5%, she will receive an amount of Rs Xyears from now, where X is

  • Rs 3415
  • Rs 4225
  • Rs 4413
  • Rs 4826
Q.15

Pick up the correct statement from the following:

  • The capital required to get a project started, is called first cost.
  • The costs associated with a new or existing project that remain unaffected by the changes in activity level over the normal range of operation of the project, are called fixed costs.
  • The group of costs that vary proportionately to the changes in the activity level of a new or existing project are called variable costs.
  • All of these
Q.16

The key to profitable operation for project cost control, is :

  • To keep the project cost equal to original cost estimate.
  • To keep the project cost equal to subsequent construction budget.
  • To keep the project cost within the cost budget and knowing when and where job costs are deviating.
  • None of these
Q.17

Pick up the correct statement from the following:

  • The ratio of current assests, loans and advances, and the current liquidity is called current ratio.
  • Larger the current ratio, larger is the margin of safety.
  • The operating profit is the difference between gross profit and operating expenses.
  • All of these
Q.18

Present worth Annuity (PWA) is generally known as

  • Premium annuities
  • Income annuities
  • Future annuities
  • All of these
Q.19

In a cash flow series :

  • uniform gradient signifies that an income or disbursement changes by the same amount in each interest period.
  • Either an increase or a decrease in the amount of a cash flow is called the gradient.
  • The gradient in the cash flow may be positive or negative.
  • All of these
Q.20

Which one of the following statements is correct?

  • The number of years required to recover the initial cash investment in a project, is called Pay Back period (PBP).
  • The discount rate that equates the present value of the expected Net Cash Flows (CFs) with the Initial Cash Outflow (ICO) is known as internal rate of return.
  • The present value of the proposal's net cash flows, less the proposal's initial cash outflow is known as the Net Present Value (NPV)
  • All of these
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