Pick out the wrong statement?

Related Mcqs:

1. Pick out the wrong statement?

   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

2. Pick out the wrong statement ?

   A. Debt-equity ratio of a chemical company describes the lenders contribution for each rupee of
   owner’s contribution i.e., debt-equity ratio = total debt/net worth
   B. Return on investment (ROI) is the ratio of profit before interest & tax and capital employed
   (i.e. net worth + total debt)
   C. Working capital = current assets + current liability
   D. Turn over = opening stock + production closing stock

3. Pick out the wrong statement ?

   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)

4. Pick out the wrong statement ?

   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

5. 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 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

6. Which of the following is not a component of the working capital for a chemical process plant ?

   A. Product inventory
   B. In-process inventory
   C. Minimum cash reserve
   D. Storage facilities

7. Which of the following methods of depreciation calculations results in book values greater than those obtained with straight line method ?

   A. Multiple straight line method
   B. Sinking fund method
   C. Declining balance method
   D. Sum of the years digit method

8. Gross earning is equal to the total income minus___________________?

   A. Total product cost
   B. Fixed cost
   C. Income tax
   D. None of these

9. Most chemical plants use an initial working capital amounting to 10-20% of the total capital investment. But this percentage may increase to ______________ percent in case of seasonal products manufacturing plant?

   A. 30
   B. 50
   C. 75
   D. 95

10. A reactor having a salvage value of Rs. 10000 is estimated to have a service life of 10 years. The annual interest rate is 10%. The original cost of the reactor was Rs. 80000. The book value of the reactor after 5 years using sinking fund depreciation method will be Rs _____________?

    A. 40,096
    B. 43,196
    C. 53,196
    D. 60,196