Practice Test: Question Set - 05
1. The construction manager uses the estimate of the project
- (A) To tell the owner of the project to take his/her financial decision
- (B) To control the project during its construction
- (C) To develop bids on the project
- (D) All of these
2. A construction estimate is used
- (A) To judge tentatively or approximate value of the project
- (B) To produce a statement of the approximate cost
- (C) To decide an approximation of the value of the project and not the exact cost
- (D) None of these
3. Pick up the correct statement from the following:
- (A) The financial ratio summarizes some aspect of the firm's financial condition at the time of preparing a balance sheet
- (B) Both the numerator and denominator of financial ratios come directly from the balance sheet
- (C) Income statement ratios compare a flow item from the income statement to another flow item form the income statement
- (D) All of these
4. The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as;
- (A) Present Worth Annuity
- (B) Sinking fund annuity
- (C) Compound annuity
- (D) Capital recovery annuity
5. The owner of the construction company makes use of the estimate:
- (A) To determine the capital investment costs
- (B) To assist in financial arrangements
- (C) To determine economic feasibility of the project
- (D) All of these
6. Annuities involve:
- (A) A series of payments
- (B) All payments of equal amount
- (C) Payment at equal time intervals
- (D) All of these
7. The estimate based on a detailed quantity survey and furnishes the most accurate and reliable estimate possible is known as
- (A) Conceptual estimate
- (B) Definitive estimate
- (C) Probabilistic estimate
- (D) None of these
8. Pick up the correct statement regarding financial statement analysis from the following.
- (A) Final analysis always involves the use of various financial statements i.e., balance sheet and income statement
- (B) The balance sheet is the summary of assets, liabilities and owner's equity of business at a point in time
- (C) The income statement is the summary of revenues and expenses of a firm over a particular period of time
- (D) All the above
9. Probabilistic estimating of a construction project includes:
- (A) Labour
- (B) Productivity
- (C) Wage scale
- (D) All of these
10. Pick up the correct statement from the following:
- (A) The capital required to get a project started, is called first cost
- (B) The costs associated with a new or existing project that remain unaffected by the changes in activity level over the normal range of operation of the project, are called fixed costs
- (C) The group of costs that vary proportionately to the changes in the activity level of a new or existing project are called variable costs
- (D) All of these