SCDL Assignment Financial Management - 44

Select The Blank
Question	________ capital represents permanent capital.
Correct Answer	Equity
Multiple Choice Single Answer
Question	Cost of laying roads comes under :-
Correct Answer	Land and site cost
Multiple Choice Single Answer
Question	The entire life of the project is taken into account under
Correct Answer	Average rate of return method
Multiple Choice Single Answer
Question	Sewerage and drainage cost of the project is categorised under :-
Correct Answer	Building cost
Question	Details regarding Bridge finance comes under the ________ category of Project report.
Correct Answer	Financing plan
Select The Blank
Question	Short term finance is normally for a period upto ________ year.
Correct Answer	One
True/False
Question	The secondary data is collected through market survey, specific for the project being appraised.
Correct Answer	FALSE
Multiple Choice Single Answer
Question	Cost of materials include :-
Correct Answer	Cost of components and consumable stores
Multiple Choice Single Answer
Question	The cost of Plant and Machinery may be adjusted for a possible increase known as :-
Correct Answer	Escalation
True/False
Question	Name of the finance manager comes under the Project organisation category of the Project report.
Correct Answer	TRUE
Multiple Choice Single Answer
Question	Miscellaneous fixed assets includes :-
Correct Answer	Cables
Select The Blank
Question	________ is a current liability.
Correct Answer	Trade credit
True/False
Question	The ratios of one organisation compared with the ratios of the same organisation is termed as inter-firm comparison.
Correct Answer	FALSE
Multiple Choice Single Answer
Question	The ratio that roughly measures the company's potential reserve of cash is termed as :-
Correct Answer	Net Working capital to total assets
Multiple Choice Single Answer
Question	The sources of funding have expanded from banks, insurance companies and multilateral agencies to include the :-
Correct Answer	Capital market
True/False
Question	Sensitivity analysis consists of assessing the degree of risk.
Correct Answer	TRUE
Multiple Choice Single Answer
Question	Sources of funds include :-
Correct Answer	Increase in secured borrowing
Multiple Choice Single Answer
Question	Demographic market appraisal answers to
Correct Answer	Who they are?
Multiple Choice Single Answer
Question	The statement which shows the movement of cash into and out of firm's kittie is known as :-
Correct Answer	Cash flow statement
Select The Blank
Question	As the plant capacity increase, the investment cost unit capacity ________.
Correct Answer	Decreases
Multiple Choice Single Answer
Question	Sanctioned bank limits is categorised under :-
Correct Answer	Working capital
True/False
Question	Trend projection method is the important technique for forecasting demand.
Correct Answer	TRUE
Multiple Choice Single Answer
Question	Delays in infrastructure Development by State Agencies may lead to :-
Correct Answer	Cost and time overrun
Multiple Choice Single Answer
Question	Past trend method of Commercial appraisal technique is :-
Correct Answer	Adopted as a guide depending on the consumption pattern of the society as a whole
Select The Blank
Question	Detailed Project Report is generally prepared from a ________ report with additional information.
Correct Answer	Feasibility
Multiple Choice Multiple Answer
Question	While choosing the location for a project, the following factors should be considered :-
Correct Answer	Proximity to raw materials and markets , Availability of infrastructure , Government policies and other factors
Multiple Choice Single Answer
Question	The cost which change in the same proportion in which the level of production changes is known as :-
Correct Answer	Variable cost
True/False
Question	The Detailed Project report spells out the modus operandi for the implementation of the Project and the realization of the Project objectives.
Correct Answer	TRUE
Multiple Choice Single Answer
Question	The second phase of the technical appraisal which focuses upon appraising the likely technical gaps consists of :-
Correct Answer	Problems faced during the Construction and Project implementation
Multiple Choice Single Answer
Question	In BCG Matrix "STARS" indicate :-
Correct Answer	Products which enjoy a high market share as well as a high growth rate
Multiple Choice Single Answer
Question	Infrastructural projects include :-
Correct Answer	Power Generation and Distribution
Multiple Choice Single Answer
Question	A Project is a temporary endeavor to achieve some specific objectives within a :-
Correct Answer	Predefined time
Multiple Choice Single Answer
Question	Cost of utilities include :-
Correct Answer	Cost of electricity
True/False
Question	Financial analysis based on accounting ratios will give mis-leading results if the effects of changes in price level are not taken into account.
Correct Answer	TRUE
Multiple Choice Single Answer
Question	End use method of Commercial appraisal technique is :-
Correct Answer	A list of industries wherein the product is used is made and quantity and volume is arrived at
Multiple Choice Single Answer
Question	The Projects which are undertaken for further enhancing/augmenting the existing capacity is known as :-
Correct Answer	Expansion Projects
Multiple Choice Single Answer
Question	Preoperative expenses includes :-
Correct Answer	Bank guarantees
Multiple Choice Single Answer
Question	Cost of overheads include :-
Correct Answer	Cost of repairs and maintenance
Correct Answer	Increase
Multiple Choice Single Answer
Question	BCG Product Portfolio Matrix analyses products on the basis of :-
Correct Answer	Relative Market share and Industry Growth rate
True/False
Question	A high debt equity ratio may indicate that the financial stake of the creditors is more than that of the owners.
Correct Answer	TRUE
Multiple Choice Multiple Answer
Question	Debt Service coverage ratio may be considered to be one of the most important ratios calculated by the :-
Correct Answer	Bankers , Financial Institutions
Select The Blank
Question	________ is a current asset
Correct Answer	Book debts
True/False
Question	Nominal maximum capacity is the capacity that is technically attainable and this corresponds to the supplier's guaranteed capacity.
Correct Answer	TRUE
Select The Blank
Question	A market survey generally is a ________ survey.
Correct Answer	Sample
Multiple Choice Single Answer
Question	The ratio which covers those assets which can be converted into cash immediately is known as :-
Correct Answer	Quick ratio
Multiple Choice Multiple Answer
Question	Casual methods of Demand forecasting consists of :-
Correct Answer	Consumption-level method , Econometric method
Multiple Choice Multiple Answer
Question	The objectives of the funds flow statement is as follows :-
Correct Answer	To find out the uses of loans raised by the business , To indicate the financial strength and weakness of the business , To help to understand the changes in assets as well as asset sources which are not revealed by the income statement
Select The Blank
Question	________ in assets involves outflow of funds.
Correct Answer	Increase
True/False
Question	Interest and Dividend are to be considered while calculating Operating ratio.
Correct Answer	FALSE
Multiple Choice Single Answer
Question	A project objective which states What "achieving it " would cost is known as :-
Correct Answer	Finance cost aspect
True/False
Question	The advantage of secondary sources of data is that it is readily and economically available.
Correct Answer	TRUE

Note: Please tally the answers and verify them from SCDL textbooks as all answers might not be correct.