February 2019

A. 1000 (1 + 0.1/4)20
B. 1000 (1 + 0.1)20
C. 1000 (1 + 0.1/4)5
D. 1000 (1 + 0.1/2)5

A. Quarterly
B. Semi-annually
C. Annually
D. In no case, they are equal

A. Straight line method
B. Declining balance
C. Both A. and B.
D. Neither A. nor B.

A. Gives a correct picture of profitability
B. Underemphasises liquidity
C. Does not measure the discounted rate of return
D. Takes into account the cash inflows after the recovery of investments

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

A. Ageing
B. Wear and tear
C. Obsolescence
D. Breakdown or accident

A. Decrease
B. Increase
C. No change
D. None of these

A. Fixed
B. Overhead
C. Utilities
D. Capital

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

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