Pick out the wrong statement?

Related Mcqs:

1. Pick out the wrong statement?

   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

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. ‘Utilities’ in a chemical process plant includes compressed air, steam, water, electrical power, oxygen, acetylene, fuel gases etc. Utility costs for ordinary chemical process plants ranges roughly from _______________ percent of the total product cost?

   A. 1 to 5
   B. 10 to 20
   C. 25 to 35
   D. 35 to 45

7. The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is__________________?

   A. 15%
   B. 10%
   C. 1.5%
   D. 150%

8. Manufacturing cost in a chemical company does not include the____________________?

   A. Fixed charges
   B. Plant overheads
   C. Direct products cost
   D. Administrative expenses

9. The depreciation during the year ‘n’, in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage ‘N’ to the ?

   A. Initial cost
   B. Book value at the end of (n – 1)th year
   C. Depreciation during the (n – 1)th year
   D. Difference between initial cost and salvage value

10. Fixed capital investment of a chemical plant is the total amount of money needed to supply the necessary plant and manufacturing facilities plus the working capital for operation of the facilities. Which of the following components of fixed capital investment requires minimum percentage of it ?

    A. Electrical installation cost
    B. Equipment installation cost
    C. Cost for piping
    D. Equipment insulation cost