Questions and answers for exam Preparation

MCQs

Total Questions : 398 | Page 1 of 40 pages

Question 1. A shareholder has __________ say in the affairs of company management compared to a debenture holder.

More
Less
Same
No

Discuss Question

Answer: Option A. -> More

Question 2. 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 x (index value/(index value at original cost was obtained)The most major component of this cost index is

Fabricated equipment and machinery
Process instruments and control
Pumps and compressor
Electrical equipments and material

Discuss Question

Answer: Option A. -> Fabricated equipment and machinery

Question 3. Pick out the wrong statement.

Gross revenue is that total amount of capital received as a result of the sale of goods or service
Net revenue is the total profit remaining after deducting all costs excluding taxes
The ratio of immediately available cash to the total current liabilities is known as the cash ratio
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

Discuss Question

Answer: Option B. -> Net revenue is the total profit remaining after deducting all costs excluding taxes

Question 4. A balance sheet for an industrial concern shows

The financial condition at any given time
Only current assets
Only fixed assets
Only current and fixed assets

Discuss Question

Answer: Option A. -> The financial condition at any given time

Question 5. Effluent treatment cost in a chemical plant is categorised as the __________ cost.

Fixed
Overhead
Utilities
Capital

Discuss Question

Answer: Option C. -> Utilities

Question 6. Construction expenses are roughly __________ percent of the total direct cost of the plant.

Discuss Question

Answer: Option B. -> 10

Question 7. In financial accounting of a chemical plant, which of the following relationship is invalid?

Assets = equities
Assets = liabilities + net worth
Total income = costs + profits
Assets = capital

Discuss Question

Answer: Option D. -> Assets = capital

Question 8. Personnel working in the market research group is reponsible for the job of

Equipment selection
Product evaluation
Equipment design
Cost estimation

Discuss Question

Answer: Option B. -> Product evaluation

Question 9. Payback period

And economic life of a project are the same
Is the length of time over which the earnings on a project equals the investment
Is affected by the variation in earnings after the recovery of the investment
All of the above

Discuss Question

Answer: Option B. -> Is the length of time over which the earnings on a project equals the investment

Question 10. Pick out the wrong statement.

Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity)
Return on equity = profit after tax/net worth
Working capital turn over ratio = sales/net working capital
Total cost of production is more than net sales realisation (NSR) at break even point

Discuss Question

Answer: Option D. -> Total cost of production is more than net sales realisation (NSR) at break even point