Practice Test: Question Set - 03
1. Pick up the correct statement from the following:
- (A) An
annuity is a series of equal payments occurring at equal period of time
- (B) Annuity
is called an equal payment or uniform payment series
- (C) An
annuity may have periods of time of any length but should always be of equal
length
- (D) All the
above
2. The sunk costs include:
- (A) A past
expenditure
- (B) An
unrecovered balance
- (C) An invested
capital that cannot be retrieved
- (D) All of these
3. Pick up the element of the cost from the following:
- (A) Direct
material
- (B) Direct
labour
- (C) Over head
- (D) All of these
4. The ratio obtained by dividing 'quick assets' by current liabilities is called
- (A) Turnover
ratio
- (B) Acid test
ratio
- (C) Solvency
ratio
- (D) None of
these
5. The construction estimate of a project is used by:
- (A) The owner of
the facility
- (B) The
consulting architect/engineer
- (C) The
contractor of the project
- (D) All of these
6. Pick up the correct statement from the following:
- (A) The ratios
which show profitability in relation to sales and those which show
profitability in relation to investment are called profitability ratios
- (B) The ratio of
gross profit and net sales is called profitability in relation to sales ratio
- (C) The ratio of
net profit after taxes to total assets is known as profitability in relation to
investment ratio
- (D) All of these
7. The product of CAF (S P) and PWF (S P) is:
- (A) 1/2
- (B) 1
- (C) 1/3
- (D) 1/4
8. Which one of the following is not a construction estimate?
- (A) Initial
feasibility estimate
- (B) Conceptual
preliminary budget
- (C) Definite
estimate
- (D) None of
these
9. If ‘P’ is principal amount, ‘I’ is the rate of interest per annum and ‘n’ is the number of periods in years, the compound amount factor (CAF) is:
- (A) (1 + i)n
- (B) (1 + i)(1/2n)
- (C) √(n + i)
- (D) None of
these
10. 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:
- (A) (1 + ni)
- (B) (ni -
1)
- (C) ni
- (D) None of
these
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