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)

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)
by

1 Answer

Answer :

(D) In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
by

Related questions

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

Description : 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

Last Answer : (C) At breakeven point, NSR is more than the total production cost

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

Description : 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 ... /net working capital (D) Total cost of production is more than net sales realisation (NSR) at breakeven point

Last Answer : (D) Total cost of production is more than net sales realisation (NSR) at breakeven point

Pick out the wrong statement. (A) Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes (B) A cost index is merely a number for a given year showing the cost at that time relative to a certain base year (C) Turnover ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment (D) Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary

Description : Pick out the wrong statement. (A) Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes (B) A cost index is merely a number for a given year ... butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary

Last Answer : (D) Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary

In an ordinary chemical plant, electrical installation cost may be about (A) 10-15% of purchased equipment cost (B) 3-10% of fixed capital investment (C) Either (A) or (B) (D) Neither (A) nor (B)

Description : In an ordinary chemical plant, electrical installation cost may be about (A) 10-15% of purchased equipment cost (B) 3-10% of fixed capital investment (C) Either (A) or (B) (D) Neither (A) nor (B)

Last Answer : (C) Either (A) or (B)

Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment. (A) 10 to 20 (B) 20 to 40 (C) 45 to 60 (D) 65 to 75

Description : Purchased cost of equipments for a chemical process plant ranges from __________ percent of the fixed capital investment. (A) 10 to 20 (B) 20 to 40 (C) 45 to 60 (D) 65 to 75

Last Answer : (B) 20 to 40

The % of ‘K’ in Extracellular fluid is about (A) 1% (B) 2 to 3% (C) 10% (D) 15%

Description : The % of ‘K’ in Extracellular fluid is about (A) 1% (B) 2 to 3% (C) 10% (D) 15%

Last Answer : Answer : A

A Firm is considering undertaking a project that would yield annual profits (after depreciation) of Rs 68,000 for 5 years. The initial outlay of the project would be Rs 800,000 and the project's assets would have a residual value of Rs 50,000 at the end of the project. What would be the accounting rate of return for this project? A 16% B 8.5% C 8.0% D 9.1%

Description : A Firm is considering undertaking a project that would yield annual profits (after  depreciation) of Rs 68,000 for 5 years. The initial outlay of the project would be Rs  800,000 and the project's assets would have ... accounting rate of return for this project?  A 16%  B 8.5%  C 8.0%  D 9.1%

Last Answer : A 16%

'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from (A) 1.2 to 1.4 (B) 2.5 to 2.7 (C) 4.2 to 4.4 (D) 6.2 to 6.4

Description : 'Lang factor' is defined as the ratio of the capital investment to the delivered cost of major equipments. The value of 'Lang factor' for fixed capital investment, for a solid-fluid processing chemical plant ranges from (A) 1.2 to 1.4 (B) 2.5 to 2.7 (C) 4.2 to 4.4 (D) 6.2 to 6.4

Last Answer : C) 4.2 to 4.4

Fixed charges for a chemical plant does not include the (A) Interest on borrowed money (B) Rent of land and buildings (C) Property tax, insurance and depreciation (D) Repair and maintenance charges

Description : Fixed charges for a chemical plant does not include the (A) Interest on borrowed money (B) Rent of land and buildings (C) Property tax, insurance and depreciation (D) Repair and maintenance charges

Last Answer : D) Repair and maintenance charges

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%

Description : 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%

Last Answer : (C) 1.5%

3. S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period(a) 10.1% decrease (b) 11.2% decrease (c) 13.3% decrease (d) 16.0% decrea

Description : 3. S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25 ... period(a) 10.1% decrease (b) 11.2% decrease (c) 13.3% decrease (d) 16.0% decrease

Last Answer : (a) 10.1% decrease

Depreciation (A) Costs (on annual basis) are constant when the straight line method is used for its determination (B) Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time (C) Does figure in the calculation of income tax liability on cash flows from an investment (D) All (A), (B) and (C)

Description : Depreciation (A) Costs (on annual basis) are constant when the straight line method is used for its determination (B) Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time ... income tax liability on cash flows from an investment (D) All (A), (B) and (C)

Last Answer : (D) All (A), (B) and (C)

Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost × (index value at present/ index value at time original cost was obtained). The most major component of this cost index is (A) Fabricated equipment and machinery (B) Process instruments and control (C) Pumps and compressor (D) Electrical equipments and material

Description : Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of ... (B) Process instruments and control (C) Pumps and compressor (D) Electrical equipments and material

Last Answer : (A) Fabricated equipment and machinery

Adhu Ltd. owns machinery (rate of depreciation is 15%), the written down value of which as on 1st April 2017 is Rs.30 Lakh. Due to fire, entire assets in the block were destroyed and the insurer paid Rs.25 lakh. The eligible depreciation in respect of block : a) Rs.450000 b) Rs. 75000 c) Rs. 400000 d) Nil

Description : Adhu Ltd. owns machinery (rate of depreciation is 15%), the written down value of which as on 1st April 2017 is Rs.30 Lakh. Due to fire, entire assets in the block were destroyed and the insurer paid Rs.25 lakh ... depreciation in respect of block : a) Rs.450000 b) Rs. 75000 c) Rs. 400000 d) Nil

Last Answer : d) Nil

From the information given below, calculate Debt service coverage Ratio– Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6,000, Debenture Redemption Fund Appropriation of Outstanding Debentures 10%. (A) 4•06 times (B) 5•06 times (C) 6•06 times (D) 7•06 times

Description : From the information given below, calculate Debt service coverage Ratio- Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6 ... . (A) 4 06 times (B) 5 06 times (C) 6 06 times (D) 7 06 times

Last Answer : Answer: 4•06 times

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

Description : 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 ... method will be Rs. (A) 40,096 (B) 43,196 (C) 53,196 (D) 60,196

Last Answer : D) 60,196

the ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio. (A) Cash reserve (B) Capital (C) Turnover

Description : the ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio. (A) Cash reserve (B) Capital (C) Turnover

Last Answer : (C) Turnover

In a manufacturing industry, breakeven point occurs, when the (A) Total annual rate of production equals the assigned value (B) Total annual product cost equals the total annual sales (C) Annual profit equals the expected value (D) Annual sales equals the fixed cost

Description : In a manufacturing industry, breakeven point occurs, when the (A) Total annual rate of production equals the assigned value (B) Total annual product cost equals the total annual sales (C) Annual profit equals the expected value (D) Annual sales equals the fixed cost

Last Answer : (B) Total annual product cost equals the total annual sales

Pick out the wrong statement. (A) Low intensity explosives are also called propellants, whereas high intensity explosive are called detonators (B) Gun powder comprises of 75% salt petre, 15% charcoal and 10% sulphur (C) Lead azide is a popular military explosive (D) TNT is a hygroscopic explosive having very high melting point and is non-toxic to human being

Description : Pick out the wrong statement. (A) Low intensity explosives are also called propellants, whereas high intensity explosive are called detonators (B) Gun powder comprises of 75% salt petre, 15% charcoal ... TNT is a hygroscopic explosive having very high melting point and is non-toxic to human being

Last Answer : (D) TNT is a hygroscopic explosive having very high melting point and is non-toxic to human being

What is the rate of depreciation charged on Computer Software: a) 10% b) 60% c) 40% d) 15%

Description : What is the rate of depreciation charged on Computer Software: a) 10% b) 60% c) 40% d) 15%

Last Answer : b) 60%

The Percentage of Water used for Drinking in the world is? A. 1% (Answer) B. 10% C. 3% D. 5%

Description : The Percentage of Water used for Drinking in the world is? A. 1% (Answer) B. 10% C. 3% D. 5%

Last Answer : A. 1% (Answer)

Decrease in field strength on top of Mount Everest is A. 10% B. 5% C. 1% D. 0.3%

Description : Decrease in field strength on top of Mount Everest is A. 10% B. 5% C. 1% D. 0.3%

Last Answer : 0.3%

The definition of 'small-scale industry' in India is based on - (1) sales by the unit (2) Investment In machines and equipments (3) market coverage (4) export capacity

Description : The definition of 'small-scale industry' in India is based on - (1) sales by the unit (2) Investment In machines and equipments (3) market coverage (4) export capacity

Last Answer : (2) Investment In machines and equipments Explanation: Generally, small-scale sector is defined in terms of investment ceilings on the original value of the installed plant and machinery. As per ... -scale and large-scale industries. This limit is being continuously raised up wards by government.

The definition of ‘small-scale industry’ in India is based on (1) sales by the unit (2) investment in machines and equipments (3) market coverage (4) export capacity

Description : The definition of ‘small-scale industry’ in India is based on (1) sales by the unit (2) investment in machines and equipments (3) market coverage (4) export capacity

Last Answer : investment in machines and equipments

GDP at factor cost exceeds GDP at market price (a) When the factor income from abroad is negative ; (b) When depreciation on fixed capital exceeds income in investment; (c) When direct tax exceeds indirect tax ; (d) When subsidies exceeds indirect taxes.

Description : GDP at factor cost exceeds GDP at market price (a) When the factor income from abroad is negative ; (b) When depreciation on fixed capital exceeds income in investment; (c) When direct tax exceeds indirect tax ; (d) When subsidies exceeds indirect taxes.

Last Answer : (d) When subsidies exceeds indirect taxes. 

India's contribution to total global carbon dioxide emissions is about: (A) ~15% (B) ~3% (C) ~6% (D) ~10%

Description : India's contribution to total global carbon dioxide emissions is about: (A) ~15% (B) ~3% (C) ~6% (D) ~10%

Last Answer : Answer: C

The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the (A) Overhead cost (B) Working capital (C) Indirect production cost (D) Direct production cost

Description : The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the (A) Overhead cost (B) Working capital (C) Indirect production cost (D) Direct production cost

Last Answer : (B) Working capital

Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about __________ percent of the fixed capital investment. (A) 4 (B) 13 (C) 22 (D) 34

Description : Cost of piping in a fluid processing unit (e.g., distillation) of a chemical process plant is about __________ percent of the fixed capital investment. (A) 4 (B) 13 (C) 22 (D) 34

Last Answer : (B) 13

How much percentage of the body water by weight is in the blood plasma. a. 1% b. 5% c. 10% d. 15%

Description : How much percentage of the body water by weight is in the blood plasma. a. 1% b. 5% c. 10% d. 15%

Last Answer : 5%

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

Description : 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

Last Answer : (B) 50

A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs. (A) 300 (B) 600 (C) 800 (D) 1000

Description : A machine has an initial value of Rs. 5000, service life of 5 years and final salvage value of Rs. 1000. The annual depreciation cost by straight line method is Rs. (A) 300 (B) 600 (C) 800 (D) 1000

Last Answer : (C) 800

Answer: b Metabolic response to injury results in increased energy expenditure. If energy intake is less than expenditure, oxidation of body fat stores and erosion of lean body mass will occur with resultant loss of weight. When weight loss exceeds 10–15% of body weight, the complications of malnutrition interact with disease processes, with increased morbidity and mortality rates. The goal of nutritional support is maintenance of body cell mass and limitation of weight loss to less than 10% preinjury. The major impact of nutritional support in the trauma patient is to aid host defense. Under-nutrition may compromise the available host defense mechanism and may thus increase the likelihood of invasive sepsis, multiple organ system failure, and death. Resuscitation, oxygenation and arrest

Description : Answer: b Metabolic response to injury results in increased energy expenditure. If energy intake is less than expenditure, oxidation of body fat stores and erosion of lean body mass will occur ... requirements, caloric requirements should be distributed at a ratio of 70% as glucose and 30% as fat

Last Answer : Which of the following statement(s) is/are true concerning body fuel reserves? a. The largest fuel reserve in the body is skeletal muscle b. Fat provides about 9 calories/gram c. Free glucose and glycogen stores are a trivial fuel reserve d. Body protein is a valuable storage form of energy

Pick out the wrong statement. (A) ****, *** & Vodka are prepared by the formulation of fruit juice, sugar beet & rye respectively (B) Protein catalysts are called enzymes (C) The rate of chemical reaction is independent of the concentration of reactants at high concentration of enzymes (D) Total sugar content in molasses is about 10%

Description : Pick out the wrong statement. (A) Wine, rum & Vodka are prepared by the formulation of fruit juice, sugar beet & rye respectively (B) Protein catalysts are called enzymes (C) The rate ... concentration of reactants at high concentration of enzymes (D) Total sugar content in molasses is about 10%

Last Answer : (D) Total sugar content in molasses is about 10%

During the fiscal year 2010-11 gross fixed capital formation or domestic investment was _____ A. 10.3% B. 11.11% C. 13.4% D. 14.7%

Description : During the fiscal year 2010-11 gross fixed capital formation or domestic investment was _____ A. 10.3% B. 11.11% C. 13.4% D. 14.7%

Last Answer : ANSWER: C

During the fiscal year 2010-11 gross fixed capital formation or domestic investment was _____ A. 10.3% B. 11.11% C. 13.4% D. 14.7%

Description : During the fiscal year 2010-11 gross fixed capital formation or domestic investment was _____ A. 10.3% B. 11.11% C. 13.4% D. 14.7%

Last Answer : ANSWER: C

. A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget? (a) Capital cost of a new collection vehicle (b) Depreciation of the machinery (c) Operatives wages (d) Fuel for the collection Vehicles

Description : . A Local Authority is preparing cash Budget for its refuse disposal department. Which of the  following items would not be included in the cash budget? (a) Capital cost of a new collection vehicle (b) Depreciation of the machinery (c) Operatives wages (d) Fuel for the collection

Last Answer : (b) Depreciation of the machinery

The difference between gross investment and net investment is (a) Depreciation (b) Acceleration © Deceleration (d) Capital investment

Description : The difference between gross investment and net investment is (a) Depreciation (b) Acceleration © Deceleration (d) Capital investment

Last Answer : (a) Depreciation

GDP at market prices is the sum of Consumption, Investment, Government Spending and Net Exports. „Net‟ exports is (a) Gross exports minus depreciation ; (b) Exports minus imports ; (c) Gross exports earnings minus capital inflow ; (d) Export minus imports of merchandize

Description : GDP at market prices is the sum of Consumption, Investment, Government Spending and Net Exports. „Net‟ exports is (a) Gross exports minus depreciation ; (b) Exports minus imports ; (c) Gross exports earnings minus capital inflow ; (d) Export minus imports of merchandize 

Last Answer : (b) Exports minus imports ;

If variable part of annual cost on account of interest and depreciation on the capital outlay is equal to the annual cost of electrical energy wasted in the conductors, the total annual cost will be minimum and the corresponding size of conductor will be most economical. This statement is known as (a) Kelvin's law (b) Ohm's law (c) Kirchhoffs law (d) Faraday's law (e) none of the above

Description : If variable part of annual cost on account of interest and depreciation on the capital outlay is equal to the annual cost of electrical energy wasted in the conductors, the total annual cost will be minimum and the ... (b) Ohm's law (c) Kirchhoffs law (d) Faraday's law (e) none of the above

Last Answer : (a) Kelvin's law

In declining balance method of depreciation calculation, the (A) Value of the asset decreases linearly with time (B) Annual cost of depreciation is same every year (C) Annual depreciation is the fixed percentage of the property value at the beginning of the particular year (D) None of these

Description : In declining balance method of depreciation calculation, the (A) Value of the asset decreases linearly with time (B) Annual cost of depreciation is same every year (C) Annual depreciation is the fixed percentage of the property value at the beginning of the particular year (D) None of these

Last Answer : (C) Annual depreciation is the fixed percentage of the property value at the beginning of the particular year

What is the term in economics for the consumption of fixed capital? a) Investment b) Value added c) Production flow d) Depreciation

Description : What is the term in economics for the consumption of fixed capital? a) Investment b) Value added c) Production flow d) Depreciation

Last Answer : d) Depreciation

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

Description : 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 ... ) Depreciation during the (n - 1)th year (D) Difference between initial cost and salvage value

Last Answer : (B) Book value at the end of (n - 1)th year

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

Description : 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 ... (B) Equipment installation cost (C) Cost for piping (D) Equipment insulation cost

Last Answer : (D) Equipment insulation cost

A limited company makes a net profit of Rs. 2,00,000 after writing off preliminary expenses amounting to Rs. 20,000 and providing for depreciation on assets amounting to Rs. 40,000 and gain of Rs. 10,000 on sale of a piece of machinery. What are the funds from operation ? (A) Rs. 2,00,000 (B) Rs. 2,40,000 (C) Rs. 2,50,000 (D) Rs. 2,60,000

Description : A limited company makes a net profit of Rs. 2,00,000 after writing off preliminary expenses amounting to Rs. 20,000 and providing for depreciation on assets amounting to Rs. 40,000 and gain of Rs. 10,000 on sale of a piece of ... 2,00,000 (B) Rs. 2,40,000 (C) Rs. 2,50,000 (D) Rs. 2,60,000

Last Answer : Answer: Rs. 2,50,000

When supplying emergency lighting loads, the storage battery initial voltage must not exceed the standard system voltage by more than _____________. A. 2% B. 3% C. 5% D. 10%

Description : When supplying emergency lighting loads, the storage battery initial voltage must not exceed the standard system voltage by more than _____________. A. 2% B. 3% C. 5% D. 10%

Last Answer : Answer: C

Pick out the wrong statement. (A) The integral method of analysing kinetic data is used when the data is scattered (B) The differential method of analysing kinetic data requires more accurate or larger amounts of data (C) When the reaction rate is independent of temperature, the reaction is said to be of zero order (D) The ratio of volumes of plug flow reactor to that of mixed reactor is always less than one for identical feed composition, flow rate, conversion and for all positive reaction orders

Description : Pick out the wrong statement. (A) The integral method of analysing kinetic data is used when the data is scattered (B) The differential method of analysing kinetic data requires more accurate ... less than one for identical feed composition, flow rate, conversion and for all positive reaction orders

Last Answer : (C) When the reaction rate is independent of temperature, the reaction is said to be of zero order

What is the value of Three-Year 4.25% Annual Coupon Bond Puttable at Par one year from now if one year forward rates at T (0), T (1) and T (2) are 2.50%, 3% and 4.5% respectively? a) 101.54 b) 101.71 c) 102.67 d) 102.89

Description : What is the value of Three-Year 4.25% Annual Coupon Bond Puttable at Par one year from now if one year forward rates at T (0), T (1) and T (2) are 2.50%, 3% and 4.5% respectively? a) 101.54 b) 101.71 c) 102.67 d) 102.89

Last Answer : c) 102.67

Which of the following leads to under-capitalization? A. raising of more money by issue of shares. B. acquiring fixed assets on excessive amounts. C. over-estimation of earnings for enterprise. D. under-estimation of initial rate of earnings.

Description : Which of the following leads to under-capitalization? A. raising of more money by issue of shares. B. acquiring fixed assets on excessive amounts. C. over-estimation of earnings for enterprise. D. under-estimation of initial rate of earnings.

Last Answer : D. under-estimation of initial rate of earnings.

Which of the following leads to over-capitalization? A. acquiring fixed assets on excessive amounts. B. under-estimation of initial rate of earnings. C. using lower-rate of capitalization. D. under estimation of required funds.

Description : Which of the following leads to over-capitalization? A. acquiring fixed assets on excessive amounts. B. under-estimation of initial rate of earnings. C. using lower-rate of capitalization. D. under estimation of required funds.

Last Answer : A. acquiring fixed assets on excessive amounts.