The interest calculated on the basis of 365 days a year, is known as : interest

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Question
The interest calculated on the basis of 365 days a year, is known as :
Options
A. interest
B. ordinary simple interest
C. exact simple interest
D. None of these

Correct Answer

exact simple interest

Engineering Economy problems

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2. Pick up the correct statement from the following:
Options
A. A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed.
B. In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project.
C. As the discount rate increases, the net present value profile slopes downward to the right.
D. All of these

3. Pick up the correct statement from the following:
Options
A. The financial ratio summarises some aspect of the firm's financial condition at the time of preparing a balance sheet.
B. Both the numerator and denominator of financial ratios come directly from the balance sheet.
C. Income statement ratios compare one 'flow' item from the income statement to another flow item from the income statement.
D. Income statement ratios compare a flow item from the income statement to another flow item form the income statement
E. All of these

6. Pick up the correct statement from the following:
Options
A. Ratio analysis is the procedure of determining and interpreting numerical relationship of various items of the financial statement.
B. All financial ratios are obtained by relating two sets of information contained in a Single financial statement.
C. The relationship between two accounting figures expressed mathematically, is known as a financial ratio.
D. All of these

7. If interest is paid more than once in a year, i is the rate of interest per year, n is the number of periods in years and m is a number of periods per years, compound amount factor (CAF) is :
Options
A.
B.
C.
D.

10. If a is the base amount expenditure, b is the increase in the operation cost each year over a period of n years, the total cost of maintenance is :
Options
A. a + (n + 1) b
B. a + (n - 1) b
C. a x (n - 1) b
D. a - (n - 1) b

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