GATE Chemical Engineering Previous Year Papers Pdf - 2

Question: 6

The _____ of a chemical company can be obtained directly from the balance sheet as the difference between current assets and current liabilities

(A) current ratio

(B) cash ratio

(C) net working capital

(D) liquids assets

Ans: C

net working capital

Question: 7

Which of the following is not a component of depreciation cost?

(A) loss due to accident/breakdown in the machinery

(B) loss due to decrease in the demand of products

(C) loss due to obsolescence of the equipment

(D) repairs and maintenance cost

Ans: D

repairs and maintenance cost

Question: 8

Gantt chart (or Bar chart) is helpful in

(A) preparing production schedule

(B) efficient dispatching of products

(C) inventory control

(D) efficiency utilisation of manpower and machines

Ans: A

preparing production schedule

Question: 9

The payback method for the measurement of return on investment

(A) does not measure the discounted rate of return

(B) takes into account the cash inflows after the recovery of investments

(C) underemphasises liquidity

(D) gives a correct picture of profitability

Ans: A

does not measure the discounted rate of return

Question: 10

______ taxes are based on gross earnings.

(A) Capital gain

(B) Income

(C) Excise

(D) Property

Ans: B

Income

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