MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 18 Mcqs, each offering curated multiple-choice questions to sharpen your Uncategorized topics knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
When there is high inflation in the economy, how will it affect the supply of money in the economy? |
| A. | No effect on the money supply |
| B. | Supply of money decreases |
| C. | Supply of money increases |
| D. | None of the above |
| Answer» D. None of the above | |
| 2. |
The costs those which neither contributes to function nor the appearance of the product is called |
| A. | Extra cost |
| B. | Unnecessary cost |
| C. | Esteem cost |
| D. | Exchange cost |
| Answer» C. Esteem cost | |
| 3. |
Refer to the cash flow diagram of uniform gradient in a cash flow (in the given figure), the gradient is: |
| A. | Rs. 10000 per year |
| B. | Rs. 15000 per year |
| C. | Rs. 20000 per year |
| D. | Rs. 25000 per year |
| Answer» E. | |
| 4. |
Determine total as well as per unit contribution if Sales is Rs 40,000, Sales in units is 4,000 and variable cost is Rs 30,000. |
| A. | Rs 10,000 and Rs 2.5 |
| B. | Rs 70,000 and Rs 3.5 |
| C. | Rs 36,000 and Rs 3.6 |
| D. | None of the above |
| Answer» B. Rs 70,000 and Rs 3.5 | |
| 5. |
If nominal rate of return is 10% per annum and annual effective rate of interest is 10.25% per annum, determine the frequency of compounding: |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | None of the above |
| Answer» C. 3 | |
| 6. |
If the nominal rate of interest is 10% per annum and there is quarterly compounding, the effective rate of interest will be: |
| A. | 10% per annum |
| B. | 10.10 per annum |
| C. | 10.25%per annum |
| D. | 10.38% per annum |
| Answer» E. | |
| 7. |
The term marginal cost can be used as a substitute of variable cost while measuring Contribution. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 8. |
Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost is Rs 5,000. What is break-even point? |
| A. | 500 units |
| B. | 1,000 units |
| C. | 1,250 units |
| D. | None of the above |
| Answer» D. None of the above | |
| 9. |
Pick up the correct reason for making conceptual (or preliminary) estimate from the following: |
| A. | To have a check on a definitive cost estimate |
| B. | To check quotations from contractors and/or sub-contractors |
| C. | To compute target estimate for the owner while drawing and specifications are in initial stage |
| D. | All of these |
| Answer» E. | |
| 10. |
Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following: |
| A. | Liquidity ratio |
| B. | Financial leverage ratio |
| C. | Activity ratio |
| D. | None of these |
| Answer» E. | |
| 11. |
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. | v(n + i) |
| D. | None of these |
| Answer» B. (1 + i)(1/2n) | |
| 12. |
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 |
| Answer» B. (ni - 1) | |
| 13. |
Efficient portfolios can be defined as those portfolios which for a given level of risk provides |
| A. | Maximum return |
| B. | Average return |
| C. | Minimum return |
| D. | None of the above |
| Answer» B. Average return | |
| 14. |
Present value tables for annuity cannot be straight away applied to varied stream of cash flows. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 15. |
If a seller recovers his capital along with accumulated compensating interest not in one single lump-sum payment but in periodical equal payments, over time: |
| A. | Capital Recovery Annuity fs availed |
| B. | Present work Annuity is availed |
| C. | Sinking Fund Annuity is availed |
| D. | Sinking Fund Annuity is availed |
| Answer» B. Present work Annuity is availed | |
| 16. |
There is no difference between the capital market line and security market line as both the terms are same. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» C. none | |
| 17. |
The Break-even Point of a company is that level of sales income which will equal the sum of its fixed cost. |
| A. | True |
| B. | False |
| C. | none |
| D. | all |
| Answer» B. False | |
| 18. |
If a is the base amount expenditure, b is the increase in the operation cost each year over a period of 'n years, the total cost of maintenance is: |
| A. | a + (n + 1) b |
| B. | a + (n - 1) b |
| C. | a (n - 1) b |
| D. | a - (n - 1) b |
| Answer» C. a (n - 1) b | |