Practice Test: Question Set - 02
1. Ratio analysis of a construction firm is used for analysis by:
- (A) Share holders
- (B) Firm's management
- (C) Banks of the firm
- (D) Financial analysts
2. Current assets less inventories divided by current liabilities is known as
- (A) Liquidity ratio
- (B) Current ratio
- (C) Acid-Test (or Quick) ratio
- (D) Debts ratio
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
4. Pick up the correct statement from the following:
- (A) The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy
- (B) The manifestation of the time value of money is termed as interest
- (C) Interest on borrowing = present amount owed - original loan
- (D) All of these
5. Which one of the following questions is relevant to the construction estimates?
- (A) Did the estimators precisely evaluate site conditions
- (B) Did the estimators use short cut methods which may be unrealistic in their situation
- (C) How much money will the contractor's risk, loosing if he were to submit bid on the raw estimate of cost
- (D) All of these
6. Both architect and engineer make use of the cost estimate of the project:
- (A) For site selection
- (B) For designing of the project
- (C) For choosing alternatives
- (D) All of these
7. 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
8. The interest calculated on the basis of 365 days a year, is known as:
- (A) Interest
- (B) Ordinary simple interest
- (C) Exact simple interest
- (D) None of these
9. The project contractor relies on the cost of the estimate:
- (A) For submission of a competitive bid for a lump-sum contract
- (B) For a unit price contract
- (C) For preparation of a definitive estimate to help negotiate contract
- (D) All of these
10. 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