MCQ Finance Code chapter 1 & 2

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Which one of the statements is incorrect *

5 points

The Railway Board was established in the year 1905

Financial Commissioner of Railways (now Member Finance) first appointed in the year 1924

Separation of the Accounting & Auditing functions on the Railways in 1929 as a sequel to the recommendations of the Acworch Committee supported in the report of Sir Arthur Lowes Dickinson

1924 year - Separation of Railway Finances / Budget from General Finances/ Budget and 2017-18 FY - Merger of Railway Budget with General Budget .

Standards of Financial Propriety enumerated in the Para ________ of IR Finance Code volume One *

5 points

106

116

126

216

Which one among these is not an exception to the Financial Justification *

5 points

Staff quarters

Safety Works

Revenue expenditure

Safety and statutory obligations

What is the present Test of Remunerative (Rate of Return) under DCF technique ? *

5 points

8 %

12 %

10 %

14 %

AAC - Average Annual Cost consists of A. Average Annual Cost of Operations – erstwhile Demands 8, 9 & 10, B. Average Annual Cost of Repairs & Maintenance – erstwhile Demands 4, 5, 6 & 7, and C. Annual Depreciation charge – erstwhile Demand No. 14

5 points

A & B are correct

B & C are correct

C & A are correct

All are correct

The features the Method are 1.Not considering the Time Value of Money . 2. The rate of Return is not important. 3. Presently not in vogue in Indian Railways 4. However there is no bar to the application of this method to evaluation of Railway Projects in consultation with PFA. 5. Suitable in the following cases. i) Plant & Machinery, where processes or products are likely to be replaced by technological changes within a few years. ii) Single purpose New line where the known reserves of coal, Iron ore, etc are expected to be depleted/exhausted after a specified number of years. Who am I ?

5 points

Average Rate of Return

NPV

Pay Back Period

None of these

Which one of these is incorrect in connection with calculation of Test of remunerative (Rate of Return) *

5 points

Minimum of 10 % on Initial Estimated cost.

Exceptions for calculation of ROR - Assisted Sidings & Residential Buildings (for which separate rules exist)

Depreciation is ignored as an element of working expenses in Annual Cash flow under the DCF Method.

Either Savings in expenditure or increase in net earnings (not both)

DCF stands for _________________ *

5 points

Dividend Cash Flow

Discount Cash Finance

Different Cash Flow

Discount Cash Flow

ROR is calculated in Average Rate of Return method is _____________ *

5 points

arriving at % ratio of Net gain over the initial estimated cost

arriving at % ratio of Net gain over the final estimated cost

arriving at % ratio of Total Income over the initial estimated cost

arriving at % ratio of Total Income over the final estimated cost

Recoupment of the Original investment is an important consideration in appraising a capital investment is the basis for method of _________________

5 points

Payback Period

Average Rate of Return

DCF

NPV

Which one of the method is a Traditional method for evaluation of financial justification of Projects *

5 points

DCF

NPV - Net Present Value

NPW - Net Present Worth

Average Rate of Return

It is important that an investment proposal is subjected to proper financial appraisal not only before it is a sanctioned but also a certain period of time after the project has been in operation. Such Post appraisal in Indian Railways is called as ______________
*

5 points

Productivity Test

Scrutiny Test

Productivity Examination

Scrutiny examination

In the beginning phase, the regulation and control of Indian Railways was vested in the Railway Branch of ____________ Department. *

5 points

Commerce & Industry

Railways

Public Works

Finance

Railway Board was formed due to the recommendations of the ______________ *

5 points

Acworth Committee

Thomas Robertson Committee

Wedgwood Committee

Railway Finance Committee

Placing of the Railway Accounts Department under the General Manager where upon the Chief Accounts Officer was placed under the administrative control of the General Manager 'instead of the Financial Commissioner. Railways. This organizational change was recommended by ___________________ *

5 points

Acworth Committee

Thomas Robertson Committee

Wedgwood Committee

Railway Finance Committee

The Finance Branch is an important limb of the Administration and its functions are broadly analogous to those of the ____________________
*

5 points

Management Accountant

Cost Accountant

Financial Adviser

Auditor

Which one among these are not the Finance Officer's job ?
*

5 points

Furnish and interpret Financial Statements

Compile Cost data and prepare cost reports

participate in all capital expenditure decisions

Preparing the Budget estimates

Which is incorrect in case of DCF Method ? *

5 points

Considered Time Value of Money

Rs.100 receivable today is less than Rs.100 receivable a year later.

Determine the value of an investment based on its future cash flows.

Assuming that the Railways' cost of finance says 10% per annum, Rs. 110 received a year hence should be worth Rs.100 today

Investment decisions are among the most interesting and difficult decisions to be made by the Managements. It is fundamental to railway system as a _______________ that expenditure other than that wholly chargeable to Ordinary Revenue incurred on new assets or for improvement of existing assets should be financially justified and sanctioned before it is actually incurred.

5 points

Commercial undertaking

Government undertaking

Public institution

Responsible Management

At the dawn of the 20th Century, nearly fifty years after the first Railway train steamed out of Bori Bunder, there were __________separate Railway Administration in India, operating over 41,000 route kilometres of Railway lines.
*

5 points

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