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