WorksheetsD33 QUIZ OF THE DAY
Total questions: 30
Worksheet time: 30mins
Name
Class
Date
1.
What is the value obtained from dismantled building materials called?
a)
Salvage Value
b)
Scrap Value
c)
Market Value
d)
Book Value
2.
Which type of value refers to the potential sale price of a property in an open market?
a)
Assessed Value
b)
Capitalized Value
c)
Market Value
d)
Scrap Value
3.
Which method assumes the property loses value by the same amount every year?
a)
Straight Line Method
b)
Declining Balance Method
c)
Sinking Fund Method
d)
Quantity Survey Method
4.
What is the formula for depreciation using Straight Line Method?
a)
(C + S)/n
b)
(C - S)/n
c)
(C × S)/n
d)
(C - S) × n
5.
Which type of annuity is paid at the beginning of each period?
a)
Annuity certain
b)
Perpetual annuity
c)
Annuity due
d)
Deferred annuity
6.
What does the term 'mortgagee' refer to?
a)
The borrower
b)
The lender
c)
The property
d)
The deed
7.
Which of the following is NOT an outgoing?
a)
Taxes
b)
Maintenance charges
c)
Net Income
d)
Sinking fund
8.
In valuation, what is the purpose of a 'sinking fund'?
a)
To pay taxes
b)
To repair damages
c)
To accumulate funds for future replacement
d)
To pay rent
9.
What is 'capitalized value' of a property?
a)
Total depreciation
b)
Net income × Year's purchase
c)
Book value - scrap value
d)
Gross rent × depreciation
10.
What is the book value at the end of useful life in Straight Line Method?
a)
Net income
b)
Scrap value
c)
Zero
d)
Gross rent
11.
Which method is suitable for properties without rent details but with similar properties nearby?
a)
Rental Method
b)
Development Method
c)
Direct Comparison Method
d)
Profit Method
12.
In which method is depreciation calculated based on actual wear and tear details?
a)
Quantity Survey Method
b)
Straight Line Method
c)
Declining Balance Method
d)
Sinking Fund Method
13.
What is meant by 'obsolescence' in depreciation?
a)
Physical damage
b)
Loss due to usage
c)
Outdated design reducing value
d)
Tax deduction
14.
What type of right allows one property owner to use another's land?
a)
Mortgage
b)
Easement
c)
Lease
d)
Salvage
15.
What does 'Year’s Purchase' mean in valuation?
a)
Cost per year
b)
Capital required to earn Re. 1 annually
c)
Amount of loan
d)
Annual tax
16.
What is the formula for Year’s Purchase at 5% interest?
a)
1/0.05
b)
100 × 5
c)
5 × 100
d)
1/0.5
17.
Which method is best suited for income-generating buildings like hotels?
a)
Development method
b)
Cost method
c)
Profit method
d)
Depreciation method
18.
Which value is listed in account books after allowing depreciation?
a)
Book Value
b)
Scrap Value
c)
Market Value
d)
Capitalized Value
19.
What type of building valuation is used when the property is in under-developed condition?
a)
Rental method
b)
Profit method
c)
Depreciation method
d)
Development method
20.
How is Net Income calculated for valuation?
a)
Gross income + outgoings
b)
Gross income × rate of interest
c)
Gross income - outgoings
d)
Net rent × year’s purchase
21.
Calculate the depreciated value of a building after 20 years using Straight Line Method. Cost of building = Rs. 1,50,000, Scrap Value = Rs. 15,000, Life = 80 years.
a)
Rs. 33,750
b)
Rs. 1,20,000
c)
Rs. 1,35,000
d)
Rs. 45,000
22.
If a property has a net annual income of Rs. 12,000 and the current interest rate is 6%, calculate the capitalized value.
a)
Rs. 2,00,000
b)
Rs. 1,80,000
c)
Rs. 72,000
d)
Rs. 1,20,000
23.
Find the depreciation rate per year using the Constant Percentage Method. Cost = Rs. 50,000, Scrap Value = Rs. 10,000, Life = 25 years.
a)
5.2%
b)
7%
c)
6.03%
d)
4%
24.
Calculate net income if Gross Income = Rs. 1,00,000 and Outgoings = Rs. 20,000.
a)
Rs. 70,000
b)
Rs. 80,000
c)
Rs. 75,000
d)
Rs. 60,000
25.
A building has a capital cost of Rs. 60,000, scrap value of Rs. 6,000, and life of 30 years. Calculate depreciation per year using Straight Line Method.
a)
Rs. 1,800
b)
Rs. 2,000
c)
Rs. 2,500
d)
Rs. 1,200
26.
Calculate the Year’s Purchase if the interest rate is 5%.
a)
15
b)
18
c)
20
d)
25
27.
If net income is Rs. 30,000 and year’s purchase is 10, find the capitalized value.
a)
Rs. 3,00,000
b)
Rs. 2,50,000
c)
Rs. 3,50,000
d)
Rs. 3,20,000
28.
A building of Rs. 80,000 cost has to be replaced in 40 years. Interest rate is 5%. Find the annual sinking fund. (1.05)^40 = 7.04
a)
Rs. 9,091
b)
Rs. 11,364
c)
Rs. 10,000
d)
Rs. 12,000
29.
If a building costs Rs. 90,000 and its book value after 10 years is Rs. 54,000, what is the annual depreciation using straight line method?
a)
Rs. 3,000
b)
Rs. 3,600
c)
Rs. 4,000
d)
Rs. 4,500
30.
A machine was purchased at Rs. 25,000 with expected working life of 35,000 hours and scrap value of Rs. 7,500. What is the depreciation charge per hour?
a)
Rs. 0.50
b)
Rs. 0.25
c)
Rs. 0.75
d)
Rs. 0.21
100 %
