P&M Mock Test

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P&M Mock Test

All India Valuers Association P&M Mock Test 1

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1. Speed at which the work piece advances through cutter in a cutting process is called:

1 point

a. feed rate

b. cutting Speed

c. optimal Speed

d. spindle Speed

Clear selection

2. Which of the following case law indicates that machines fastened to floor of a factory by owner are part of land?

1 point

a. Holland Vs. Hodgson

b. CIT Vs. Hindustan Polymers Ltd.

c. Sunil Synchem Vs. CIT

d. CIT Vs. Lucas Tvs. Ltd.

Clear selection

3. Process flow charts help us understand __________.

1 point

a. raw material

b. finished product

c. equipment specification

d. sequence of process

Clear selection

4. The current cost of brand new process plant is available in terms of __________.

1 point

a. capacity per day

b. second hand price

c. repair cost

d. cost to cure

Clear selection

5. Useful life of an asset is affected by which of the following?

1 point

a. Cost

b. Replacement cost

c. Wear and tear

d. Net Book Value

Clear selection

6. Which of the following is not a requirement of a contract?

1 point

a. Competent Parties

b. Free Consent

c. Legal Object

d. Adequate Consideration

Clear selection

7. Which of the following statements is true in relation to obligation of insured on notification of a claim?

1 point

a. To defend the insurer

b. To indemnify the insurer

c. To investigate and settle potentially covered

d. Ensure liability for the damage is covered by the policy

Clear selection

8. Which of the following tasks are not covered within the scope of Valuers’ functions?

1 point

a. To advise individual clients and corporate firms on effective strategies for buying properties

b. To verify revenue

c. To conduct marketing work to make the property attractive to potential purchasers

d. To appear as an expert witness in court

Clear selection

9. Difference between variable cost per unit and selling price can be classified as __________ margin per unit.

1 point

a. contribution

b. gross

c. net

d. profit

Clear selection

10. Number of years for which a new asset is profitably used for its intended purpose is known as __________.

1 point

a. Economic life

b. Normal useful life

c. Age

d. Physical life

Clear selection

11. Which of following are treated as buildings in a valuation exercise?

1 point

a. Roads

b. Foundation of machine

c. Supporting steel structures for a boiler

d. Fixtures

Clear selection

12. Equipment arranged in a sequence as per requirement of articles to be manufactured is known as __________.

1 point

a. process layout

b. product layout

c. combined layout

d. project layout

Clear selection

13. When amount of insurance is less than the value of machinery damaged a loss payable is as per

1 point

a. sum insured

b. reinstatement value

c. condition of average

d. indemnity value

Clear selection

14. Valuer may generally be invited under following capacity in Court:

1 point

a. to cross examine the valuer of the other side

b. to take the examination in chief of valuer of the other side

c. to question the advocate of the other side

d. to appear as an expert witness in court

Clear selection

15. The fundamental principles on which insurance works is, __________.

1 point

a. sum insured

b. indemnity

c. insurable interest

d. utmost good faith

Clear selection

16. To focus major items during site visit is known as __________.

1 point

a. ABC analysis

b. Balance sheet study

c. Market research

d. Reconciliation of data received

Clear selection

17. Which of the following source is most reliable source pertaining to specification of machine?

1 point

a. Internet

b. Equipment catalogue

c. Invoice

d. Maintenance schedule

Clear selection

Proposed dividend is shown in the Balance Sheet of a company under the head __________.

1 point

a. provisions

b. reserves and surplus

c. current liabilities

d. other liabilities

Clear selection

19. Which one of following peril is an add-on cover in a standard fire insurance policy?

1 point

a. Earthquake

b. Aircraft damage

c. Riots

d. Storm

Clear selection

20. Section 247(2) of the Companies Act 2013, any valuation undertaken should not be carried out using a method that is .

1 point

a. an internationally accepted valuation methodology

b. adopted by any valuation professional organisation

c. specified by Reserve Bank of India, Securities and Exchange Board of India or any other statutory regulatory body

d. customized to client needs

Clear selection

21. For a real estate construction company, which of the following are not part of Profit and Loss Statement?

1 point

a. Revenue from apartment sales

b. Interest paid to lenders

c. Cash deposited in bank

d. Depreciation expense

Clear selection

Attempt given questions based upon the following case studies.You are given a valuation assignment to value a vehicle proposed to be purchased by Mr. Y. Mr. X had purchased the vehicle for Rs.30 lakh in January 2014. Current cost of brand-new vehicle after considering negotiation discount in new condition is Rs.33 lakh as per dealer of vehicle. Your survey indicated that:e. recently similar vehicle with exactly similar mileage and model was sold for Rs.17 lakh andf. asking prices for similar vehicles is Rs.18 lakh.Based on your discussions with suppliers of vehicle and your own analysis, total economic life of vehicle is considered as 10 years, if vehicle is used for commercial use similar to the subject vehicle under valuation. Mr. X informed Mr. Y that Mr. X would be required to spend about Rs.2 lakh for repairs to the body of vehicle and replacement of worn out tyres. Your discussions with the mechanic indicated that the quote for repairs given by Mr. Y is reasonable and vehicle sold recently did not require repairs as compared to the subject vehicle. Book value of the vehicle on valuation date is Rs.15.75 lakh. Your research indicates that index for light, medium and heavy commercial vehicles in January 2014 is 111.6 and on Valuation Date is 113.2.

22. Historical cost of vehicle is Rs. lakh

1 point

a. 30

b. 33

c. 18

d. 19

Clear selection

23. Replacement cost new of vehicle is Rs. lakh.

1 point

a. 33

30.43

c. 18

d. 19

Clear selection

24. Depreciation for vehicle by straight line method, considering age of vehicle as 4 years and salvage value as 5% is Rs. lakh.

1 point

12.54

11.56

6.84

7.22

Clear selection

25. Depreciation of old vehicle considering cost of repairs is Rs._______ lakh.

1 point

a. 14.54

b. 13.40

c. 8.84

d. 9.22

Clear selection

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