Q.1

The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as;

  • Present Worth Annuity
  • Sinking fund annuity
  • Compound annuity
  • Capital recovery annuity
Q.2

The interest calculated on the basis ofdays a year, is known as :

  • interest
  • ordinary simple interest
  • exact simple interest
  • None of these
Q.3

Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

  • Liquidity ratio
  • Financial leverage ratio
  • Activity ratio
  • Portability
  • None of these
Q.4

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 :

  • (1 + ni)
  • (ni - 1)
  • ni
  • None of these
Q.5

The product of CAF (S P) and PWF (S P) is:

  • 1/2
  • 1
  • 1/3
  • 1/4
Q.6

Pick up the correct statement from the following:

  • The ratios which show profitability in relation to sales and those which show profitability in relation to investment, are called profitability ratios.
  • The ratio of gross profit and net sales, is called profitability in relation to sales ratio.
  • The ratio of net profit after taxes to total assests is known as profitability in relation to investment ratio
  • All of these
Q.7

Pick up the correct statement from the following:

  • Ratio analysis is the procedure of determining and interpreting numerical relationship of various items of the financial statement.
  • All financial ratios are obtained by relating two sets of information contained in a Single financial statement.
  • The relationship between two accounting figures expressed mathematically, is known as a financial ratio.
  • All of these
Q.8

Pick up the correct reason for making conceptual (or preliminary) estimate from the following:

  • To have a check on a definitive cost estimate.
  • To check qoutations from contractors and/or sub contractors.
  • To compute target estimate for the owner while drawings and specifications are in initial stage.
  • All of these.
Q.9

In a cash-flow diagram :

  • Time 0 is considered to be the present
  • Time 1 is considered to be the end of time period 1
  • A vertical arrow pointing up indicates a positive cash flow
  • An arrow pointing downward indicates a negative cash flow
  • All of these
Q.10

The financial analysis helps to judge:

  • The operational efficiency of the firm
  • The financial position of the firm.
  • Both (a) and (b)
  • Neither (a) nor (b)
Q.11

Pick up the correct statement from the following:

  • The ability of a company to meet obligations which are likely to mature in short term, is called liquidity.
  • The liquidity ratio may be defined as a relationship of current liabilities and current assests and advances.
  • The liquidity ratios are used to indicate the financial position of the firm.
  • All of these
Q.12

In a cash-flow diagram :

  • Time 0 is considered to be the present
  • Time 1 is considered to be the end of time period 1
  • A vertical arrow pointing up indicates a positive cash flow
  • An arrow pointing downward indicates a negative cash flow
  • All of these
Q.13

Pick up the correct statement from the following:

  • The ability of a company to meet obligations which are likely to mature in short term, is called liquidity.
  • The liquidity ratio may be defined as a relationship of current liabilities and current assests and advances.
  • The liquidity ratios are used to indicate the financial position of the firm.
  • All of these
Q.14

In a cash-flow diagram :

  • Time 0 is considered to be the present
  • Time 1 is considered to be the end of time period 1
  • A vertical arrow pointing up indicates a positive cash flow
  • An arrow pointing downward indicates a negative cash flow
  • All of these
Q.15

In a cash-flow diagram :

  • Time 0 is considered to be the present
  • Time 1 is considered to be the end of time period 1
  • A vertical arrow pointing up indicates a positive cash flow
  • An arrow pointing downward indicates a negative cash flow
  • All of these
Q.16

Pick up the correct statement from the following:

  • 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.
  • The manifestation of the time value of money is termed as interest.
  • Interest on borrowing = present amount owed - original loan
  • The original investment (or loan) is referred to as principal.
  • All of these.
Q.17

Pick up the correct statement from the following:

  • A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed.
  • 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.
  • As the discount rate increases, the net present value profile slopes downward to the right.
  • All of these
Q.18

The ratio of current assests to current liabilities is known as

  • Liquidity ratio
  • Current ratio
  • Acid-Test (or Quick) ratio
  • Debts ratio
Q.19

The estimate based on a detailed quantity survey and furnishes the most accurate and reliable estimate possible is known as

  • Conceptual estimate
  • Definitive estimate
  • Probabilistic estimate
  • None of these
Q.20

The more critical (or severe) test of the firm's liquidity can be judged by :

  • Liquidity ratio
  • Current ratio
  • Acid-Test (or Quick) ratio
  • Debts ratio
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