Deck 5: Financial Management and Project Planning: Raw Materials, Expenses, and Working Capital

Question 1

Raw material can be classified in which of the below broad categories?

A)Agricultural Products, Mineral Products, Live Stock & Forest Products, Marine Products
B)Agricultural Products, Plastic Products, Industrial Products, Forest and Marine Products
C)Agricultural Products, Mineral Products, Industrial Products, Marine Products
D)Agricultural Products, Mineral Products, Industrial Products, Live Stock and Forest Products

Answer 1

Agricultural Products, Mineral Products, Live Stock & Forest Products, Marine Products

Question 2

Lime Stone is which type of Raw Material?

A)Agricultural Products
B)Mineral Products
C)Both a and b
D)None of the Above

Answer 2

Mineral Products

Question 3

Which of the following is NOT a mineral type of raw material?

A)Iron
B)Bauxite
C)Castro Seeds
D)Zinc

Answer 3

Castro Seeds

Question 4

Which of the following is auxiliary material and factory supply?

A)Additives
B)Packaging Material
C)Oil and Grease
D)All of the Above

Question 5

Which of the following is a utility?

A)Water
B)Land
C)Building
D)Machinery

Question 6

Which of the following is NOT an equipment required for a project?

A)Plant Equipment
B)Mechanical Equipment
C)Domestic Equipment
D)Electrical Equipment

Question 7

Which of the below is a category of civil work for a project?

A)Site Preparation and Development
B)Building and Structures
C)Outdoor Works
D)All of the Above

Question 8

While calculating cost of imported machinery, which of the below needs to be considered?

A)FOB Value
B)Shipping, Freight and Insurance Cost
C)Import Duty
D)All of the Above

Question 9

Miscellaneous Fixed Assets include

A)Furniture
B)Office Machinery and Equipment
C)Vehicles
D)All of the Above

Question 10

Preliminary Expenses to start a project include

A)Expense on Preparing the Feasibility Report
B)Expense on Raw Material
C)Salaries
D)None of the Above

Question 11

The major components of Capital Issue expenses are

A)Underwriting Commission
B)Brokerage
C)None of the Above
D)a and b

Question 12

Listing Fee is which type of expense?

A)Recurring Expense
B)Capital Issue Expense
C)Miscellaneous Expense
D)None of the Above

Question 13

Which one of the below is not a preoperative expense?

A)Establishment Expenses
B)Rent, Rates and Taxes
C)Selling Expense
D)Travelling Expense

Question 14

Public Deposits represent _____________borrowings.

A)Secured
B)Unsecured
C)Deferred
D)None of the Above

Question 15

Factory overheads include

A)Rent
B)Taxes
C)Insurance on factory assets
D)All of the Above

Question 16

The prices of material inputs are defined in CIF? What does CIF stand for?

A)Cost, Investment and Fuel
B)Current Investment Flows
C)Cost, Insurance and Freight
D)Cost, Incentive and Freight

Question 17

Which one of the following is a constituent of working capital requirement? Raw material and components

A)Debtor
B)Operating expense
C)Both a and b
D)None of the Above

Question 18

Borrowing or incurring any Liability is a source of fund.

Question 19

Payment of Cash Dividend represents a source of fund.

Question 20

The analysis of funds can be called an analysis of the working capital.

Question 21

Which one of the following is an application of funds?

A)Operating Losses
B)Operating Profit
C)Increase in Capital
D)All of the Above

Question 22

If there is any decrease in current assets…

A)Working capital decreases
B)Working capital increases
C)Fixed Assets decrease
D)None of the Above

Question 23

Increase in working capital denotes….

A)Source of Funds
B)Source of Cash
C)Application of Funds
D)None of the Above

Question 24

If we want to prepare the funds flow statement we should have…

A)Balance sheets of two consecutive years
B)Funds flow statements of two consecutive years
C)Budget for next financial year
D)All of the Above