71. 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.
✅ The correct answer is option D.
Plant Economics MCQs
72. 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 using sinking fund depreciation method will be Rs.
40096
43196
53196
60196
✅ The correct answer is option D.
73. 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.
✅ The correct answer is option A.
74. Relative cost of chemical process plants in India is about __________ percent more than the similar plants in U.S.A.
15
35
55
75
✅ The correct answer is option B.
75. The ratio of gross annual sales to the fixed capital investment is termed as the __________ ratio.
cash reserve
capital
turnover
investment
✅ The correct answer is option C.
76. Utilities cost in the operation of chemical process plant comes under the
plant overhead cost
fixed charges
direct production cost
general expenses
✅ The correct answer is option C.
77. Gross earning is equal to the total income minus
total product cost
fixed cost
income tax
none of these
✅ The correct answer is option A.
78. A balance sheet for a chemical plant shows its financial condition at any given date. It does not contain the __________ of the plant.
current asset
current liability
long term debt
profit
✅ The correct answer is option D.
79. If ‘S’ is the amount available after ‘n’ interest periods for an initial principal ‘P’ with the discrete compound interest rate ‘i’, the present worth is given by
(1 + i)n/S
S/(1 + i)n
S/(1 + in)
S/(1 + n)i
✅ The correct answer is option B.
80. Fixed charges for a chemical plant does not include the
interest on borrowed money.
rent of land and buildings.
property tax, insurance and depreciation.
repair and maintenance charges.
✅ The correct answer is option D.