Practice Test: Question Set - 06
1. Which one of the following definitions is correct?
- (A) The ratio of
total debt to share holder's equity is called 'debt ratio'
- (B) The ratio
debt-to-total assets is called Debt-to-total assets ratio
- (C) The
ratio of earnings before interest and taxes for a particular reporting period
to the amount of interest charges for the period is called interest coverage
ratio
- (D) All of these
2. Pick up the correct statement from the following:
- (A) Over
head rate = total over head in rupees for period/Direct labour in rupees for
period
- (B) Over
head cost per unit = Overhead ratio × direct labour cost/unit
- (C) Both (a) and
(b)
- (D) Neither (a)
nor (b)
3. If ‘S’ is the future capital accumulated in ‘n’ years at the rate of interest ‘I’ per annum, then present worth is:
- (A) S/(1 + i)n
- (B) S (1
+ i)n
- (C) S (1
+ i)1/n
- (D) None of
these
4. The financial analysis:
- (A) Helps a
share holder to compare the expected return on his investment in the firm
against the expected return from other alternative investment
- (B) Helps a bank
to know the financial position of the firm for granting a loan to the firm
- (C) Helps
to judge the success of the firm's financial plans
- (D) All of these
5. Mr. David deposits Rs 1200 now, Rs 800 two years from now and Rs 1000 five years from now. If the savings bank's rate of interest in 5%, he will receive an amount of Rs X, 10 years from now, where ‘X’ is
- (A) Rs. 3415
- (B) Rs.
4225
- (C) Rs. 4413
- (D) Rs. 4826
6. A project construction cost estimate includes:
- (A) The labour
and material cost
- (B) The
equipment and over head cost
- (C) The profit
of the contractor
- (D) All of these
7. Earnings per share is the most important ratio for
- (A) Share
holders
- (B) Banks
- (C) Company's
management
- (D) All of these
8. Current ratio is:
- (A) Current
assets/Current liabilities
- (B) (Current
assets + loans)/Current liabilities
- (C) (Current
assets + loans advances)/Current liabilities
- (D) None of
these
9. The alternatives which are standalone solutions for given situations in engineering involve:
- (A) A purchase
cost (first cost)
- (B) The
anticipated life of the assets
- (C) The
anticipated resalable value (salvage value) and the interest return (rate of
return)
- (D) All of these
10. The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where
- (A) 8% is the
rate of interest per year
- (B) Money is
borrowed for n = 7 years
- (C) Both (a) and
(b)
- (D) Neither (a)
nor (b)
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