Q.16 The total depreciation is equal to____
    A. Initial cost – Salvage value
    B. Initial cost
    C. Salvage value
    D. Salvage value - initial cost
Ans.: A

Q.17 The value of equipment or buildings after its useful life is called__
    A. Scrap value
    B. Salvage value
    C. Depreciation value
    D. Both A or B
Ans.: D

Q.18 The method of depreciation in which the charge is made every year at a fixed rate on the diminished value of the equipment is known as
    A. Sinking fund method
    B. Diminishing value method
    C. Straight line method
    D. none of the above
Ans.: B

Q.19 In sinking fund method
    A. fixed depreciation charge is made every year
    B. interest compounded on it annually
    C. Both A and B
    D. None of the above
Ans.: C

Q.20 A generator costing of Rs. 100000 has a useful life of 20 years. Salvage value of the generator is Rs. 20000. Determine the annual depreciation charge using straight line method.
    A. Rs. 40000
    B. Rs. 45000
    C. Rs. 50000
    D. Rs. 60000
Ans.: A

Q.21 Which of the following is/are advantages of high load factor?
    A. Reduce the cost per unit of generated electrical energy
    B. Reduce variable load problems on power stations
    C. It avoids the frequent use of voltage regulating equipments
    D. all of the above
Ans.: D

Q.22 A generating power station has an installed capacity of 50000 KW and delivers 220x10^6 units per annum. If the annual fixed charges is Rs. 160 per KW installed capacity and running charges are 4 paise KWh, find out the cost per unit generated.
    A. 8.45 paise
    B. 7.64 paise
    C. 8.76 paise
    D. 8.64 paise
Ans.: B

Q.23 What is the disadvantages of straight line method of determining of depreciation charge?
    A. it does not account for the interest
    B. assumption of constant depreciation charge every year is not correct
    C. Both A and B
    D. Neither A or B
Ans.: C

Q.24 What are the disadvantage of Diminishing value method of determining of depreciation?
    A. depreciation charge is independent of rate of interest
    B. low depreciation charges are made in the late years while the maintenance and repairing charge are heavy
    C. none of the above
    D. Both A and B
Ans.: D

Q.25 If the load factor is decreased, the cost of energy is ____ for the same maximum demand.
    A. remains constant
    B. increased
    C. decreased
    D. Neither of the above
Ans.: C

Q.26 Average load is increased if the load factor is___
    A. increases
    B. decreases
    C. remains constant
    D. none of the above
Ans.: A

Q.27 The rate at which the electrical energy is delivered or supplied to the consumers is known as
    A. penalty
    B. tariff
    C. cost of production
    D. all of the above
Ans.: B

Q.28 Tariff should included the
    A. cost of production of energy
    B. cost of supplying of energy
    C. profit on capital investment
    D. all of the above
Ans.: D

Q.29 What are the objectives of tariff?
    A. Recovery of cost on capital investment
    B. recovery of cost of producing electrical energy
    C. recovery of cost of operation and maintenance of equipment
    D. Suitable profit on the capital investment
    E. all of the above
Ans.: E

Q.30 The tariff of all type of consumers will be
    A. same
    B. different according to type of consumers
    C. does not depend on type of consumers
    D. none of the above
Ans.: B