Introduction to IBR by Dr. Aznan P.3

A digital illustration representing key concepts of IBR, showcasing elements like regulated assets, financial formulas, and efficiency metrics, in a modern and engaging style.

Introduction to IBR Quiz

Test your knowledge on the Introduction to IBR with this engaging quiz designed for professionals and students alike. Dive deep into concepts like Regulated Asset Base, WACC, and cost efficiency schemes!

Key Features:

  • 10 multiple choice questions
  • Assess your understanding of IBR principles
  • Perfect for revision or learning.
10 Questions2 MinutesCreated by OptimizingData24
Q1. Why is Retail a price-cap entity in IBR?
A It has the lowest annual revenue requirement
B It is the one that charges the final tariff to customers
C It is the only customer-facing entity
D It is originally part of Customer Service
E It has low fixed cost but mostly variable cost
Q2. What is a Regulated Asset Base?
A Asset which is regulated in its base value
B Average of the starting asset value and the closing asset value
C Asset owns by a utility to conduct a non-regulated business
D Average of the depreciated value of all the assets in a regulatory period
E Asset approved by Suruhanjaya Tenaga
Q3. The following can be part of Regulated Asset Base EXCEPT:-
A Cash investment
B Transformer
C Transmission lines
D Substations
E Land
Q4. What is the purpose of Base Incentives?
A To provide continuous and sustained incentive
B To retain any variance between forecast and actual OPEX
C To test for efficiencies and benchmarking for CAPEX
D To encourage pursuit of cost efficiencies in a regulatory period
E To recover any under or over recovery from changes in sales
Q5. What is the purpose of Efficiency Carry-over Scheme?
A To provide continuous and sustained incentive
B To retain any variance between forecast and actual OPEX
C To test for efficiencies and benchmarking for CAPEX
D To encourage pursuit of cost efficiencies in a regulatory period
E To recover any under or over recovery from changes in sales
Q6. The following is part of the calculation of WACC EXCEPT:-
A Risk-free Rate
B Debt Margin
C Depreciation
D Equity Beta
E Market Risk Premium
Q7. What is the definition of Gearing in WACC?
A Debt+Equity
B Debt/Equity
C Equity/Debt
D Equity/(Debt+Equity)
E Debt/(Debt+Equity)
Questions Q8 and Q9 refers to the table above. (Please refer to tables on page 54 in the notes). What is value in cell labelled Q8? Note that ( ) denotes negative in accounting convention.
A 8.5%
B 1.8
C 255.40
D (255.40)
E 300
Q9. What is the purpose of the X factor?
A It is same as the WACC value
B To cater for the rate of annual inflation
C To cater for any unknown in the equation
D It is same as the rate in the Net Present Value calculation
E To smoothen the annual tariff increase
Q10. From the table above, calculate the WACC (to nearest 1 decimal point)
A 4.1%
B 5.2%
C 6.3%
D 7.4%
E 8.5%
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