Plant-Economics

A. Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity)
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 point

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 – interest

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 the
depreciation charges made to date
C. Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the
investment
D. Scrap value is the net amount of money obtainable from the sale of used property over and
above any charges involved in its removal & sale

A. The annual depreciation rate for machinery and equipments in a chemical process plant is
about 10% of the fixed capital investment
B. Annual depreciation rate of buildings in a chemical plant is about 3% of its initial cost
C. Insurance rates on annual basis in a chemical plant may be about 1% of the fixed capital
investment
D. In a chemical industry, research and development cost amounts to about 15% of net sales
realisation (NSR)

A. The financial condition at any given time
B. Only current assets
C. Only fixed assets
D. Only current and fixed assets

A. Gross revenue is that total amount of capital received as a result of the sale of goods or service
B. Net revenue is the total profit remaining after deducting all costs excluding taxes
C. The ratio of immediately available cash to the total current liabilities is known as the cash
ratio
D. Consolidated income statement based on a given time period indicates surplus capital and
shows the relationship among total income, costs & profit over the time interval

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

A. Advertising
B. Warehousing
C. Legal fees
D. Customer service

A. Property
B. Excise
C. Income
D. Capital gain

A. Profit before interest and tax i.e., net profit + interest + tax
B. Profit after tax plus depreciation
C. Net profit + tax
D. Profit after tax