Description : The original cost of an equipment is Rs.10,000. Its salvage value at the end of its total useful life of five years is Rs. 1,000. Its book value at the end of two years of its useful life (as per straight line method of evaluation ... be (A) Rs. 8,800 (B) Rs. 7,600 (C) Rs. 6,400 (D) Rs. 5,000
Last Answer : (C) Rs. 6,400
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
Description : A machine is purchased for Rs. 10,000,00 and has an estimated life of 10 years. The salvage value at the end of 10 years is Rs. 1,50,000. The book value of the machine at the end of 5 years using general straight line method ... Rs. 4,75,000 (B) Rs. 5,75,000 (C) Rs. 6,50,000 (D) Rs. 8,50,000
Last Answer : (B) Rs. 5,75,000
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%
Description : An earth moving equipment costs Rs. 5,00,000 and has an estimated life of 10 years and a salvage value of Rs. 50,000. What uniform annual amount must be set aside at the end of each of the 10 years for replacement if ... years is 0.069? (A) Rs. 31050 (B) Rs. 34500 (C) Rs. 37950 (D) Rs. 5000
Last Answer : (A) Rs. 31050
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
Description : A company has to choose between two projects whose cash flows are as indicated below; Project 1: i. Investment - Rs. 15 Lakhs ii. Annual cost savings - Rs. 4 lakhs. iii. Bi-annual ... years xii. Salvage Value- 2 lakhs Which project should the company choose? The annual discount rate is 12
Last Answer : Year Project 1 Project 2 Outgo Saving NPV Outgo Saving NPV 0 15.0 0 =-15.0 14.0 0 = -14 1 0 4.0 = (4 / (1+.12)1 = 3.571 0.2 3.5 = (3.3 / (1+.12)1 = 2.95 2 0.5 4.0 = (3.5 / (1+.12)2 = 2.79 0.2 3.5 ... (1+.12)8 = 3.43 0.2 5.5 (3.5+2) = (5.3 / (1+.12)8 = 2.14 NPV = + 2.301 @12% = + 0.15
Description : 'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment in years. The depreciation for Rath year by the sum-of year’s digit method will be (A) (P - S)/n (B) 1 - (P/S)1/m (C) (m/n) (P - S) (D) [2 (n - m + 1)/n(n + 1)]. (P - S)
Last Answer : D) [2 (n - m + 1)/n(n + 1)]. (P - S)
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)
Description : Annual depreciation cost are not constant when, the __________ method of depreciation calculation is used. (A) Straight line (B) Sinking fund (C) Present worth (D) Declining balance
Last Answer : (D) Declining balance
Description : why Novelty Chemicals bought a Motor Vehicle for$110,000 on January 5, 2016. The estimated usefullife of the vehicle is ten years. The disposal valueis estimated at $10,000. Annual depreciation is onthe straight line method?
Last Answer : Novelty Chemicals bought a Motor Vehicle for$110,000 on January 5, 2016. The estimated usefullife of the vehicle is ten years. The disposal valueis estimated at $10,000. Annual ... for annualdepreciation.d) The Balance Sheet extracts for motor vehicle and itsrelated depreciation.full question
Description : The depreciation method which reduces the value of a machine by equal amount each year during the useful life is known as a) Estimated method b) constant percentage method c) compound interest method d) straight line method
Last Answer : d) straight line method
Description : Regeneration of molecular sieve requires it to be heated to a temperature of about __________ °C. (A) 80-120 (B) 200-300 (C) 600-800 (D) 1000-1100
Last Answer : (D) 1000-1100
Last Answer : Annual depreciation as per straight line method, is calculated by the capital cost minus the salvage value, is divided by the number of years of life.
Description : A sum was invested for 4 yr at a certain rate of simple interest. If it had been invested at 2% more annual rate of interest, then Rs. 64 more would have been obtained. What is the sum? (a) Rs.600 (b) Rs.700 (c) Rs.800 (d) Rs.900
Last Answer : (c) Rs.800
Description : An excavator costs Rs. 20,00,000 and has an estimated life of 8 years. It has no salvage value at the end of 8 years. The book value of the excavator at the end of 3 years using general double declining balance method is (A) Rs. 8,43,750 (B) Rs. 8,75,000 (C) Rs. 10,50,000 (D) Rs. 11,56,250
Last Answer : (A) Rs. 8,43,750
Description : Payments bank of the postal department will have how much corpus at the beginning? A) Rs 900 crore B) Rs 600 crore C) Rs 1000 crore D) Rs 800 crore E) Rs 700 crore
Last Answer : D) Rs 800 crore Explanation: The payments bank of eth department will be functional by March 2017. It is one of the 11 applicants which got in principle approval to set up payments bank in the country.
Description : Production at 60% activity is Rs 600 units, if flexible budget needs to be calculated at 80% activity what will be units produced? a) Rs 800 b) Rs 600 c) Rs 1200 d) Rs 1000
Last Answer : a) Rs 800
Description : Which of the following does not affect cash flows from a proposal: A. Salvage value B. Depreciation amount C. Tax rate change D. Method of project financing
Last Answer : D. Method of project financing
Description : The annual payment of Rs. 200 in 5 yr at 5% per annum simple interest will discharge a debt of? (a) Rs. 950 (b) Rs. 800 (c) Rs. 1000 (d) Rs. 1250 (e) None of the above
Last Answer : e) None of the above
Description : 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 ... chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
Last Answer : (D) In a chemical industry, research and development cost amounts to about 15% of net sales realisation (NSR)
Description : On 1st April, 2013, Y Ltd. Issued 1000, 12% debentures of Rs. 100 each at a discount of 6%. These debentures are redeemable in five equal annual instalments at the end of each year. What is the amount of discount to be written off ... & L A/c ? (A) Rs. 2000 (B) Rs. 1800 (C) Rs. 1200 (D) Rs. 600
Last Answer : Answer: Rs. 1200
Description : 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
Last Answer : (B) Sinking fund method
Description : Out of the following, the depreciation calculated by the __________ method is the maximum. (A) Diminishing balance (B) Straight line (C) Sum of the years digit (D) Sinking fund
Last Answer : A) Diminishing balance
Description : Depreciation of machines fails under the indirect expenses head. As per income tax regulations, it is calculated by the __________ method. (A) Diminishing balance (B) Sinking fund (C) Multiple straight line (D) Sum of the years digit
Last Answer : (A) Diminishing balance
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
Description : The value of a property decreases __________ with time in straight line method of determining depreciation. (A) Linearly (B) Non-linearly (C) Exponentially (D) Logarithmically
Last Answer : A) Linearly
Description : A shopkeeper gives 12% additional discount on the discounted price, after giving an initial discount of 20% on the labeled price of a mobile. If the final sale price of the mobile is 704. then what is its labelled price? A. Rs 844 B. Rs 920 C. Rs 1000 D. Rs 1100
Last Answer : Answer – C. Rs 1000 Explanation – Let the labeled price be Rs. x 88% of 80% of x = 704 => x = (704 x 100 x 100/88 x 80)= 1000.
Description : For protection of level crossing gate in an emergency on BG double line the Gateman should place one detonator at one place and 3 detonators at a subsequent place at a distance of ------- a) and------ ... c) 500 meters and 1000 meters d) 600 meters and 1200 meters* e) 800 meters in 1500 meters
Last Answer : d) 600 meters and 1200 meters*
Description : Capital employed is Rs.50,000 Trading Profit amounted Rs.12,200, Rs.15,000 and Rs.2000 loss for 2016, 2017 and 2018 respectively. Rate of interest is 8% and the rate of risk is 2% Remuneration from alternative employment of the ... A Rs.8,000 B Rs.8,800 C Rs.8,850 D Rs.9,500 ANS: Rs.8,850
Last Answer : A
Description : A sells an article to B making a profit of 1/5 th his outlay. B sells it to C, gaining 20%. If C sells it for Rs 600 and incurs a loss of 1/6 th his outlay, the cost price of A is: 1. Rs 600 2. Rs 500 3. Rs 720 4. Rs 800
Last Answer : 1. Rs 600
Description : An investment pays Rs.300 annually for five years, with the first payment occurring today. The present value of the investment discounted at a 4% annual rate is approximately __________. a) Rs.1336 b) Rs.1389 c) Rs.1625 d) Rs.1925
Last Answer : b) Rs.1389
Description : For a small scale toy factory, the fixed cost per month is Rs. 5000/-. The variable cost per toy is Rs. 20 and sales price is Rs. 30 per toy. The break even production per month will be __________ toys. (A) 250 (B) 500 (C) 1000 (D) 3000
Last Answer : (B) 500
Description : Salaries Rs.20000,depreciation for the period is Rs.30000 other operating expenses are Rs.9000, net loss for the period is Rs.5000 fund generated from operation is------------------ a) Rs.25000 b) Rs.15000 c) Rs.35000 d) Rs.14000
Last Answer : a) Rs.25000
Description : Ravi marked his Walkman at 60% above his cost price. If he had decreased his discount from 20% to 10%. he would have earned Rs.80 more. Find his cost price. a)640 b)600 c)500 d)800
Last Answer : c)500
Description : The divisional supdt may sanction may sanction up to Rs 500/- reimbursement of cell phones charges up to _______for those who under take any activity that facilitate marketing of product/service of the dept. a) 4000/- b) 5000/- c) 1000/- d) 12000/
Last Answer : a) 4000/
Description : 200 kg of solids (on dry basis) is subjected to a drying process for a period of 5000 seconds. The drying occurs in the constant rate period with the drying rate as, Nc = 0.5 10 -3 kg/m2 .s. The initial ... moisture/kg dry solid). (A) 0.5 (B) 0.05 (C) 0.1 (D) 0.15
Last Answer : (C) 0.1
Description : A project has the following cash inflows Rs.34,444; Rs.39,877; Rs.25,000; and Rs.52,800 for years 1 through 4, respectively. The initial cash outflow is Rs.104,000. Which of the following four statements ... than or equal to 14%, but less than 18%. D. The IRR is greater than or equal to 18%.
Last Answer : C. The IRR is greater than or equal to 14%, but less than 18%.
Description : An annuity is a series of equal payments occuring at equal time intervals, and this amount includes the sum of all payments plus interest, if allowed to accumulate at a definite rate of interest from ... cost (B) Depreciation by sinking fund method (C) Discrete compound interest (D) Cash ratio
Last Answer : (B) Depreciation by sinking fund method
Description : A machine costs Rs. 20000 and its useful life is 8 years. The money is borrowed at 8% interest per annum. The capital recovery factor at 8% interest per annum for 8 years is 0.174. The annual equipment cost of the machine will be (A) Rs. 1740 (B) Rs. 3480 (C) Rs. 5220 (D) Rs. 6960
Last Answer : (B) Rs. 3480
Description : A hiker stands at the bottom of steep hill. The hiker may follow a straight line path to the top of the hill, a distance of 300 feet, or she may follow a zig-zag path to the top of the hill and walk a ... times the work going along the straight path? Is it: w) equal x) twice y) 4 times z) 8 times?
Last Answer : ANSWER: W -- EQUAL
Description : A tractor shovel has a purchase price of Rs. 4.7 lacs and could save the organization an amount of rupees one lac per year on operating costs. The salvage value after the amortization period is 10% of the purchase price. The ... will be (A) 3.7 years (B) 4.23 years (C) 5 years (D) 7.87 years
Last Answer : (B) 4.23 years
Description : ________ of depreciation calculation accounts for the interest on investment. (A) Straight line method (B) Declining balance (C) Both (A) and (B) (D) Neither (A) nor (B)
Last Answer : D) Neither (A) nor (B)
Description : Maximum value of transaction for e-SBTR should be _________ A. Rs.1000 B. Rs.2000 C. Rs.3000 D. Rs.5000 E. No limit
Last Answer : E. No limit Explanation: There is no maximum limit.
Description : Minimum value of transaction for e-SBTR should be _______ A. Rs.1000 B. Rs.2000 C. Rs.3000 D. Rs.5000 E. No limit
Last Answer : D. Rs.5000 Explanation: Minimum value of transaction for e-SBTR should be Rs.5,000.
Description : Annual depreciation of a machine is included in : A)fixed cost b)variable cost C)hiring cost d)none of them
Last Answer : A)fixed cost
Description : Minimum excretory urinary volume for waste products elimination during 24 hrs is (A) 200–300 ml (B) 200–400 ml (C) 500–600 ml (D) 800 ml
Last Answer : Answer : C
Description : In SPADE system, how many PCM-encoded voice band channels are there? A. 800 B. 600 C. 300 D. 240
Last Answer : A. 800
Description : Number of meiotic divisions required to produce 200/400 seeds of pea would be (a) 200/400 (b) 400/800 (c) 300/600 (d) 250/500
Last Answer : (d) 250/500.
Description : Limit of insured articles that can be entrusted to a postman for deliver in his beat is a) Up to Rs 250/- b) Up to Rs 600/- c) Up to Rs 500/- d) Up to Rs 5000/
Last Answer : c) Up to Rs 500/