MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 728 Mcqs, each offering curated multiple-choice questions to sharpen your Computer Science Engineering (CSE) knowledge and support exam preparation. Choose a topic below to get started.
| 351. |
31. The transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in the sale is known as : |
| A. | a. lump sum sale |
| B. | b. slump sale |
| C. | c. aggregate sale |
| D. | d. total sale |
| Answer» C. c. aggregate sale | |
| 352. |
30. If the machinery is purchased on 4th October, 2018 then at what rate depreciation will be provided on it? |
| A. | a. 60% |
| B. | b. 7.5% |
| C. | c. 15% |
| D. | d. 10% |
| Answer» C. c. 15% | |
| 353. |
27. Depreciation available, if asset is used for less than 180 days during the year of acquisition shall be of block rate: |
| A. | a. 50% |
| B. | b. 20% |
| C. | c. 100% |
| D. | d)15% |
| Answer» B. b. 20% | |
| 354. |
28. If the Plant & Machinery is used for less than 180 days in the year of its acquisition, then, at what rate the depreciation on that asset should be provided under section 32? |
| A. | a. 7.5% |
| B. | b. 15% |
| C. | c. 20 |
| D. | d. 10% |
| Answer» B. b. 15% | |
| 355. |
25. Group of assets falling within a class of assets comprising of tangible & intangible assets is known as : |
| A. | a. group of assets |
| B. | b. block of assets |
| C. | c. set of assets |
| D. | d. none of these |
| Answer» C. c. set of assets | |
| 356. |
24. As per section 30, which expenditure incurred for a building used for the business or profession shall not be allowed as deduction? |
| A. | a. rent, rates and taxes |
| B. | b. insurance of building |
| C. | c. repairs of building |
| D. | d. capital expenditure |
| Answer» E. | |
| 357. |
A person leaves India permanently on 15-11-2008.The assessment year for income earned till 15-11-2008 in this case shall be: |
| A. | a) 2007-08 |
| B. | b) 2008-09 |
| C. | c) 2009-10 |
| D. | d) none of the above |
| Answer» C. c) 2009-10 | |
| 358. |
A new business was set up on15-11-2008 and it commenced its business from 1-12-2008. The first previous year in this case shall be: |
| A. | a) 15-11-2008 to 31-3-2009 |
| B. | b) 1-12-2008 to 31-3-2009 |
| C. | c) 2008-2009 |
| D. | d) none of the above |
| Answer» B. b) 1-12-2008 to 31-3-2009 | |
| 359. |
For an industrial undertaking fulfilling the conditions, additional depreciation in respect of a machinery costing Rs.10 lakh acquired and installed on October 3, 2005 is |
| A. | a) rs.75,000 |
| B. | b) rs.1,50,000 |
| C. | c) rs.1,00,000 |
| D. | d) none of the above |
| Answer» D. d) none of the above | |
| 360. |
For an employee in receipt of hostel expenditure allowance for his three children, the maximum annual allowance exempt under section 10(14) is |
| A. | a) rs.10, 800 |
| B. | b) rs.7,200 |
| C. | c) rs.9,600 |
| D. | d) rs.3,600 |
| Answer» C. c) rs.9,600 | |
| 361. |
An asset with a first cost of $100,000 is depreciated over 5-year period. It is expected to have a $10,000 salvage value at the end of 5 years. Using the straight-line method, what is the book value at the end of year 2? |
| A. | 82000 |
| B. | 90000 |
| C. | 64000 |
| D. | 60000 |
| Answer» D. 60000 | |
| 362. |
The following infinite cash flow series has a rate of return of 10%. Determine the unknown value of X. |
| A. | 120 |
| B. | 100 |
| C. | 82 |
| D. | 90 |
| Answer» E. | |
| 363. |
Your firm has purchased an injection molding machine at a cost of $100,000. The machine’s useful life is estimated at 8 years. Your accounting department has estimated the capital cost for this machine at about $25,455 per year. If your firm’s MARR is 20%, how much salvage value do you think the accounting department assumed at the end of 8 years? |
| A. | 12000 |
| B. | 9000 |
| C. | 10000 |
| D. | 11000 |
| Answer» D. 11000 | |
| 364. |
Find the annual equivalent worth for the following infinite cash flow series at an interest rate of 10%: |
| A. | 461.2 |
| B. | 445.2 |
| C. | 985.4 |
| D. | 438.6 |
| Answer» E. | |
| 365. |
Consider a project with a first cost (investment) of $250,000, an annual O&M cost of $50,000, annual revenue of $160,000, and a salvage value of $40,000 after a 10-year life. Find the annual worth of the project assuming an interest of 13% per year. |
| A. | 35867 |
| B. | 81000 |
| C. | 82445 |
| D. | 66099 |
| Answer» E. | |
| 366. |
A manufacturing company is considering two mutually exclusive machines E1 and E2 with the following cash flow information:Which machine would you recommend if the company needs either machine for only 3 years? Assume a MARR of 12% |
| A. | project e1 |
| B. | indifferent |
| C. | cannot compare without knowing the year-end salvage values over their service lives |
| D. | project e2 |
| Answer» E. | |
| 367. |
A manufacturing company is considering the purchase of a new CNC lathe, which will cost $60,000 and has an annual maintenance cost of $8,000. A few parts in the lathe need to be replaced once every 5 years to enable smooth running of the lathe. This would cost an additional $20,000 (once every 5 years). Assuming that the lathe would last 15 years under these conditions, what is the total equivalent cost (present value) of this investment at an interest rate of 12%? (Assume that there will be no appreciable salvage value at the end of 15 years.) |
| A. | 135928 |
| B. | 132275 |
| C. | 114487 |
| D. | 72275 |
| Answer» C. 114487 | |
| 368. |
Gene Research, Inc. just finished a 4-year R&D and clinical trials successfully and expects a quick approval from the Food and Drug Administration. If the company markets the product on their own, it requires $30 million immediately (n ⇓ = ⇓ 0) to build a new manufacturing facility, and it is expected to have a 10 year product life. The R&D expenditure in the previous years and the anticipated revenues that the company can generate over the next 10 years is summarized as follows:Merck, a large drug company is interested in purchasing the R&D project and the right to commercialize the product from Gene Research, Inc., immediately (nï€ =ï€ 0). What would be a starting negotiating price for the project from Merck? Assume that Gene’s MARR ⇓ = 20%. |
| A. | $524 million |
| B. | $105 million |
| C. | $420 million |
| D. | $494 million |
| Answer» B. $105 million | |
| 369. |
Consider the following two investment alternatives:Suppose that your firm needs either machine for only 2 years. The net proceeds from the sale of machine B are estimated to be $200. What should be the required net proceeds from the sale of machine A so that both machines could be considered economically indifferent at an interest rate of 10%? |
| A. | 850 |
| B. | 700 |
| C. | 750 |
| D. | 800 |
| Answer» D. 800 | |
| 370. |
Your R&D group has developed and tested a computer software package that assists engineers to control the proper chemical mix for the various process manufacturing industries. If you decide to market the software, your first year operating net cash flow is estimated to be $1,000,000. Because of market competition, product life will be about 4 years, and the product’s market share will decrease by 25% each year over the previous year’s share. You are approached by a big software house which wants to purchase the right to manufacture and distribute the product. Assuming that your interest rate is 15%, for what minimum price would you be willing to sell the software? |
| A. | 2887776 |
| B. | 2766344 |
| C. | 2047734 |
| D. | 2507621 |
| Answer» D. 2507621 | |
| 371. |
Find the capitalized equivalent worth for the project cash flow series at an interest rate of 10%. |
| A. | ce(10%) ⇓ = ⇓ $1,753 |
| B. | ce(10%) ⇓ = ⇓ $1,548 |
| C. | ce(10%) ⇓ = ⇓ $1,500 |
| D. | ce(10%) ⇓ = ⇓ $1,476 |
| Answer» C. ce(10%) ⇓ = ⇓ $1,500 | |
| 372. |
You are considering buying an old house that you will convert into an office building for rental. Assuming that you will own the property for 10 years, how much would you be willing to pay for the old house now given the following financial data? |
| A. | 250100 |
| B. | 232316 |
| C. | 201205 |
| D. | 218420 |
| Answer» E. | |
| 373. |
Find the net present worth of the following cash flow series at an interest rate of 10% |
| A. | $550 < pw(10%) ≤ $600 |
| B. | $600 < pw(10%) ≤ $650 |
| C. | $500 < pw(10%) ≤ $550 |
| D. | $650 < pw(10%) ≤ $700 |
| Answer» C. $500 < pw(10%) ≤ $550 | |
| 374. |
An investment project costs P. It is expected to have an annual net cash flow of 0.125P for 20 years. What is the project’s payback period? |
| A. | 6 years |
| B. | 0 year |
| C. | 11 year |
| D. | 8 year |
| Answer» E. | |
| 375. |
You are purchasing an automobile priced at $20,000 by borrowing at 12% interest compounded monthly. The loan will be repaid in monthly installments for five years. What is the constant dollar value (value at the time of financing) of the 36th payment of this loan, if the general inflation rate is 5% compounded monthly? |
| A. | 361.91 |
| B. | 383.66 |
| C. | 444.89 |
| D. | 396.02 |
| Answer» C. 444.89 | |
| 376. |
A couple wants to save for their daughter’s college expenses. The daughter will enter college 8 years from now and she will need $40,000, $41,000, $42,000, and $43,000 in actual dollars for 4 school years. Assume that these college payments will be made at the beginning of the school year. The future general inflation rate is estimated to be 6% per year and the annual inflation-free interest rate is 5%. What is the equal amount, in actual dollars, the couple must save each year until their daughter goes to college (for 8 years)? |
| A. | 11945 |
| B. | 11838 |
| C. | 12538 |
| D. | 12142 |
| Answer» C. 12538 | |
| 377. |
You are considering purchasing a $1,000 bond with a coupon rate of 9.5%, interest payable annually. If the current inflation rate is 4% per year, which will continue in the foreseeable future, what would be the real rate of return if you sold the bond at $1,080 after 2 years? |
| A. | about 9.5% |
| B. | about 13.26% |
| C. | about 9.26% |
| D. | about 8.9% |
| Answer» E. | |
| 378. |
The average starting salary for engineers for 2008 is $53,000. What is the equivalent salary in terms of purchasing power of 2000? Assume that the general inflation rate over the last 8 years is known to be 4%. |
| A. | 34980 |
| B. | 38727 |
| C. | 72534 |
| D. | 40276 |
| Answer» D. 40276 | |
| 379. |
The CPI for 2000 was 171.2 and the projected CPI for 2008 is 220. What is the general inflation rate over the last 8 years? |
| A. | 0.0365 |
| B. | 0.061 |
| C. | 0.0318 |
| D. | 0.0283 |
| Answer» D. 0.0283 | |
| 380. |
If you experience a 6 % annual inflation, how long does it take to see the purchasing power being reduced in half? |
| A. | 13 years |
| B. | 10 years |
| C. | 12 years |
| D. | 11years |
| Answer» D. 11years | |
| 381. |
If the inflation rate is 6% per year and the market interest rate is known to be 15% per year. What is the implied real interest rate in this inflationary economy? |
| A. | 0.1145 |
| B. | 0.09 |
| C. | 0.08 |
| D. | 0.0849 |
| Answer» E. | |
| 382. |
The current gasoline price is $4.15, and it is projected to increase next year by 5%, and 8% the following year, and -3% the third year. What is the average inflation rate for the projected gasoline price for the next 3 years? |
| A. | 0.0323 |
| B. | 0.0333 |
| C. | 0.0533 |
| D. | 0.03 |
| Answer» B. 0.0333 | |
| 383. |
Constant (real) dollars reflect constant purchasing power independent of the passage of time |
| A. | true |
| B. | false |
| Answer» B. false | |
| 384. |
____ dollars is the dollar value that is “influenced†by inflation. |
| A. | actual |
| B. | constant |
| Answer» B. constant | |
| 385. |
Actual (current) dollars (An)is the dollar value that is “influenced†by _____________. |
| A. | deflation |
| B. | inflation |
| Answer» C. | |
| 386. |
Actual (current) dollars (An)is the dollar value that is “influenced†by inflation. |
| A. | true |
| B. | false |
| Answer» B. false | |
| 387. |
_________ rate is defined as the rate at which the cost general level of goods and services increases resulting in decreases of purchasing power of goods and services. |
| A. | deflation |
| B. | inflation |
| Answer» C. | |
| 388. |
Inflation rate is defined as the rate at which the cost general level of goods and services increases resulting in decreases of purchasing power of goods and services. |
| A. | true |
| B. | false |
| Answer» B. false | |
| 389. |
CPI does not take into the account the price of raw material, finished product and operating cost |
| A. | true |
| B. | false |
| Answer» B. false | |
| 390. |
The same dollar amount buys less of an item over time is ____________ |
| A. | inflation |
| B. | deflation |
| Answer» B. deflation | |
| 391. |
____________ is a loss in the purchasing power of money over time. |
| A. | inflation |
| B. | deflation |
| Answer» B. deflation | |
| 392. |
Inflation is a loss in the purchasing power of money over time. |
| A. | true |
| B. | false |
| Answer» B. false | |
| 393. |
Consider a machine that costs $20,000 and has a five-year useful life.At the end of the five years, it can be sold for $4,000 after all tax adjustments have been factored in. If the firm could earn an after-tax revenue of $4,400 per year with this machine, should it be purchased at an interest rate of 10%? (All benefits and costs associated with the machine are accounted for in these figures.) |
| A. | -220.76 |
| B. | -200 |
| C. | -240 |
| Answer» B. -200 | |
| 394. |
____________ are incurred by the operation of physical plants or equipment needed to provide service |
| A. | operating costs |
| B. | capital recovery costs |
| Answer» B. capital recovery costs | |
| 395. |
_______________ are incurred by purchasing assets to be used in production and service. |
| A. | operating costs |
| B. | capital recovery costs |
| Answer» C. | |
| 396. |
Given: F = $5,000, N = 5 years, and i = 7% , Find: A |
| A. | 9999 |
| B. | 9746.78 |
| C. | 9700 |
| D. | 869.7 |
| Answer» E. | |
| 397. |
Given: F = $100,000, N = 8 years, and i = 7% Find: A |
| A. | 9999 |
| B. | 9746.78 |
| C. | 9700 |
| Answer» C. 9700 | |
| 398. |
the practice of charging an interest rate only to an initial sum (principal amount) is _______ |
| A. | compound interest |
| B. | simple interest |
| Answer» C. | |
| 399. |
A fund created by making periodic deposits (usually equal) at compound interest in order to accumulate a given sum at a given future time for some specific purpose is sinking fund |
| A. | true |
| B. | false |
| Answer» B. false | |
| 400. |
A fund accumulated by periodic deposits and reserved exclusively for a specific purpose, such as retirement of a debt |
| A. | sinking fund |
| B. | principal |
| C. | interest |
| Answer» B. principal | |