CBSE Questions for Class 11 Commerce Applied Mathematics Basics Of Financial Mathematics Quiz 10 - MCQExams.com

A sum of Rs.$$100,000$$ is invested for $$4$$ years at $$13$$ % per annum compound interest. Calculate the interest.
  • $$61000$$
  • $$62000$$
  • $$63000$$
  • $$64000$$
Find the rate which will amount to Rs. $$12,100$$ in two years, if the principle amount was Rs $$10,000$$.
  • $$10$$%
  • $$11$$%
  • $$12$$%
  • $$13$$%
A car which costs $$\text{Rs. } 3,50,000$$ depreciates by $$10$$% every year. What will be the worth of the car after three years?
  • $$\text{Rs. } 2,55,150$$
  • $$\text{Rs. } 1,65,150$$
  • $$\text{Rs. } 2,25,350$$
  • $$\text{Rs. } 1,55,350$$
The simple interest at $$x\%$$ for $$x$$ years will be Rs. $$x$$ on a sum of _________.
  • Rs. $$x$$
  • Rs. $$100x$$
  • Rs. $$\left(\displaystyle\frac{100}{x}\right)$$
  • Rs. $$\left(\displaystyle\frac{100}{x^2}\right)$$
The value of a machine depreciates every year by $$5\%$$. If the present value of the machine be Rs. $$100,000$$, what will be its value after two years?
  • Rs. $$100,050$$
  • Rs. $$90, 250$$
  • Rs. $$99,250$$
  • Rs. $$99,000$$
Madhavi bought a scooter for $$Rs. 40,000$$ but she does not have enough money to pay all at once. The shopkeeper says that she can divide the cost into 4 equal monthly instalments but she would have to pay $$Rs.100$$ extra each month for 4 months. What is this additional amount paid by Madhavi to the shopkeeper called as and calculate the total extra amount at the end of 4 months paid by Madhavi?
  • Profit, $$Rs. 400$$
  • Principal, $$Rs. 400$$
  • Loss, $$Rs. 400$$
  • Interest, $$Rs. 400$$
As part of the Taxation Reforms in 1991, the rates of taxation were reduced in respect of_______________.
  • Corporate Income Tax
  • Personal Income Tax
  • Customs Duties
  • All of the above
Equal sums of Rs.$$7200$$ were lent to Megha and Priya at $$5$$ $$\%$$ per annum for a period of $$4$$ years and $$5$$ years respectively. Find the difference of the interest paid by Megha and Priya.
  • Rs.$$140$$
  • Rs.$$560$$
  • RS.$$260$$
  • Rs.$$360$$
The cost of a vehicle is Rs. $$1,75,000$$. If its value depreciates at the rate of $$20\%$$ per annum, then the total depreciation after $$3$$ years was _________.
  • Rs. $$86,400$$
  • Rs. $$82,500$$
  • Rs. $$84, 500$$
  • Rs. $$85,400$$
Belose Infrastructures  just issued 10 million Rs100-par bonds payable carrying 8% coupon rate and maturing in 5 years. The bond indenture requires GI to set up a sinking up to pay off the bond at the maturity date. Semi-annual payments are to be made to the fund which is expected to earn 10% per annum. Find the amount of required periodic contributions.
  • 7905155
  • 7950515
  • 8950515
  • 6950515
There is a $$60\%$$ increase in an amount in $$6$$ years at simple interest. What will be the compound interest on $$Rs. 12,000$$ after $$3$$ years at the same rate?
  • $$Rs.\ 2160$$
  • $$Rs.\ 3120$$
  • $$Rs.\ 3972$$
  • $$Rs.\ 6240$$
The time required for a sum of money to double at $$5$$% annum compounded continuously is (in years)
  • $$13.5$$
  • $$13.9$$
  • $$13$$
  • $$14.3$$
Depreciation is a charge against _______.
  • Profit
  • Assets
  • Company
  • Books of A/c
The purpose of depreciation is to _____________.
  • Reduce fixed assets to market value each year
  • Save income tax and wealth tax
  • Reduce fixed assets to the standard value
  • Allocate the cost of fixed asset
Which of the following assets is usually assumed not to depreciate?
  • Land
  • Building
  • Plant
  • Furniture
The permanent, continuing and gradual shrinkage in the book value of a fixed assets is called _______.
  • Appreciation
  • Depreciation
  • Reduction
  • Computation
_________ cost will still be incurred although a plant is shut down temporarily.
  • Cost of raw material
  • Advertising
  • Depreciation
  • Carriage
The reduction in the value of the fixed assets which can arise due to time factor is:
  • Discount
  • Depreciation
  • Reduction
  • None of these
According to Accounting Standard-6, depreciation is to be provided on the basis of _____________.
  • Historical cost of the asset
  • Market price of the asset
  • Replacement cost of asset
  • Any of the above
Depreciation is provided on _________.
  • Current assets
  • Liquid assets
  • Fictitious assets
  • Fixed assets
Which one of the following statements is correct?
  • Depreciation is not the process of valuation of asset-it is a process of allocation of cost of asset to the period of its economic life.
  • If the cost of machinery is more than the book value, then depreciation need not be provided.
  • When the plant and machinery and maintained in good condition, through repairs and renewals, depreciation need not be provided.
  • In the absence of any legal provisions, if the auditor finds that provision made for depreciation is inadequate, then he is not required to refer to it in his report.
According to ________ useful life of an asset is normally the period over which it is expected to be used.
  • AS 3
  • AS 6
  • AS 2
  • AS 4
Depreciation is allocation of _______________ amount.
  • Increase
  • Decrease
  • Valuable
  • Depreciable
According to Accounting Standard-6 which of the following is not required to be disclosed in the financial statement?
  • Historical cost of the asset
  • Depreciated value of the asset
  • Accumulated depreciation
  • Total depreciation for the period for each class of asset
Which of the following indicated the Debt-Service Coverage Ratio (DSCR) of 1.5 of a firm?
  • The total obligations (i.e. interest plus repayment on the long term loan) of the firm are 1.5 times its PBDIT
  • The total obligations are 1.5 times its PAT (Profit After Tax)
  • The post-tax cash earnings are are 1.5 times its total obligations.
  • The post-tax earnings after depreciation are 1.5 times its total obligations.
  • The total obligations are 1.5 times than equity earnings
Depreciation is a non-cash expense.
  • True
  • False
Accounting Standard-6 relating to depreciation is not applicable on ____________.
  • Building
  • Plant and machinery
  • Live stock
  • Patents
Where depreciable assets are revalued, then according to Accounting Standard-6 depreciation amount should be based on____________.
  • Historical cost and profit on revaluation should be transferred to P and L a/c
  • Revalued amount
  • Depreciated value of the asset
  • Accounting Standard-6 does not specify anything in this regard
__________ means decrease in the value of asset.
  • Depreciation
  • Appreciation
  • Appraisal
  • Valuation
Accounting Standard-6 relating to depreciation is applicable to___________.
  • Forests and plantations
  • Mines
  • Goodwill
  • Land if it has a limited useful life for the enterprise
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