Practice Test: Question Set - 07
1. Keeping in view, the feasibility order of magnitude, the preliminary, conceptual or budget estimates, are prepared by:
- (A) Architect/engineer
- (B) Construction
manager
- (C) Owner
himself/herself
- (D) Construction
manager
2. The person desires to pay off the amount in 10 equal annual instalments. The amount of each installment is:
- (A) Rs. 5638
- (B) Rs. 6638
- (C) Rs. 7738
- (D) None
of these
3. Liquidity ratios are used:
- (A) To measure a
firm’s ability to meet short-cut obligations
- (B) To
compare short term obligations to short-term resources available to meet these
obligations
- (C) 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
- (D) All
of these
4. Each financial ratio is generally compared by
- (A) A
past ratio calculated from the past financial standard of the firm
- (B) A
ratio developed by using the projected financial statement of the firm
- (C) A
ratio of some selected firms most progressive and successful at the point of
consideration
- (D) All
of these
5. Pick up the correct statement from the following:
- (A) Ratio
analysis is the procedure of determining and interpreting numerical
relationship of various items of the financial statement
- (B) All
financial ratios are obtained by relating two sets of information contained in
a Single financial statement
- (C) The
relationship between two accounting figures expressed mathematically, is known
as a financial ratio
- (D) All
of these
6. Present worth Annuity (PWA) is generally known as
- (A) Premium
annuities
- (B) Income
annuities
- (C) Future
annuities
- (D) All
of these
7. Pick up the method used for project evaluation and selection in capital budgeting from the following:
- (A) Payback
period
- (B) Internal
ratio of return
- (C) Net
present worth
- (D) All
the above
8. Pick up the correct statement from the following:
- (A) The capital
required to get a project started is the first cost
- (B) The first
cost is a single cash flow or a series of cash flows that are made in the
beginning of the activity's life span
- (C) The
first cost of purchasing a car is the sum of the down payment, taxes and
dealers charges
- (D) All
of these
9. Pick up the correct statement from the following:
- (A) The
difference between sales revenue and cost of goods sold, is known as 'Gross
Profit'
- (B) The
gross profit percentage is the average profit margin obtained on goods sold
- (C) The
relationship of contribution to sales is known as contribution ratio
- (D) All
of these
10. The key to profitable operation for project cost control, is:
- (A) To
keep the project cost equal to original cost estimate
- (B) To
keep the project cost equal to subsequent construction budget
- (C) To
keep the project cost within the cost budget and knowing when and where job
costs are deviating
- (D) None of
these
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