A.
Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity)V
B.
Return on equity = profit after tax/net worth-
C.
Working capital turnover ratio = sales/net working capital:
D.Total cost of production is more than net sales realisation (NSR) at breakeven pointT
Q.2:
Pick out the wrong statement?
A.
Gross margin = net income net expenditure-
B.
Net sales realisation (NSR) = Gross sales selling expenses>
C.At breakeven point, NSR is more than the total production cost>
D.
Net profit = Gross margin depreciation interest7
Q.3:
Pick out the correct statement ?
A.
Difference between income and expense is termed as gross revenue@
B.
Unamortised cost is the difference between the original cost of a property and all theV
C.
depreciation charges made to date!
D.
Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the\
Q.4:
Pick out the wrong statement ?
A.
The annual depreciation rate for machinery and equipments in a chemical process plant isX
B.
about 10% of the fixed capital investment)
C.
Annual depreciation rate of buildings in a chemical plant is about 3% of its initial costY
D.
Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capitalX
Q.5:
A balance sheet for an industrial concern shows ___________________?D
A.The financial condition at any given time)
B.
Only current assets
C.
Only fixed assets
D.
Only current and fixed assets
Q.6:
Pick out the wrong statement ?
A.
Gross revenue is that total amount of capital received as a result of the sale of goods or serviceb
B.Net revenue is the total profit remaining after deducting all costs excluding taxesS
C.
The ratio of immediately available cash to the total current liabilities is known as the cash]
D.
ratio
Q.7:
If an amount R is paid at the end of every year for n years, then the net present value of the annuity at an interest rate of i is _________________?
A.
R [{(1 + i)n 1}/ i ]
B.R [{(1 + i)n 1}/ i (1 + i)n]
C.
R(1 + i)n
D.
R/(1 + i)n
Q.8:
Which of the following does not come under the sales expenses for a product of a chemical plant ?a
A.
Advertising
B.
Warehousing
C.Legal fees
D.
Customer service
Q.9:
____________ taxes are based on gross earnings ?0
A.
Property
B.
Excise
C.Income
D.
Capital gain
Q.10:
Operating profit of a chemical plant is equal to___________________?D
A.Profit before interest and tax i.e., net profit + interest + tax@