Acc 501: Current Assets, Fixed Assets and Revenues

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ACC501 Current 11 Solved Finalterm Papers and Important
MCQS
Solved…
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EXAMINATION
Question No: 1 ( Marks: 1 ) - Please choose one
The accounting definition of income is:
►Income = Current Assets -Current Liabilities
►Income = Fixed Assets - Current Assets
►Income = Revenues - Current Liabilities
►Income = Revenues - Expenses pg 17
Question No: 2 ( Marks: 1 ) - Please choose one
What would be the capital spending for an organization who has purchased fixed assets of Rs. 200,000 and sold fixed assets of Rs. 45,000?
►Rs. 245,000
►Rs. 200,000
►Rs.1 55 , 0 0 0
►Rs. 45,000
200000-
45000=155000
Question No: 3 ( Marks: 1 ) - Please choose one
Selected information from SNT Company's accounting records is as follows: o Cash paid to retired common shares Rs. 15,000
o Proceeds from issuance of preferred shares Rs. 20,000 o
Cash dividends paid Rs. 8,000
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o Proceeds from sale of equipment Rs. 25,000
On its cash flow statement for the year, SNT Company should report net cash flow from financing activities as:
►Rs. 3,000 net cash inflow
►Rs. 3,000 net cash outflow
►Rs. 8,000 net cash inflow
►Rs. 8,000 net cash inflow
Question No: 4 ( Marks: 1 ) - Please choose one
SNT Company has a current ratio of 3:2. Current Liabilities reported by the company are Rs. 30,000 . What would be the Net Working Capital for the company?
►Rs. 45,000
►Rs. 15,000
► ( R s . 4 5 ,0 0 0 )
►( Rs. 15,000)
Question No: 5 ( Marks: 1 ) - Please choose one
Which of the following would not improve the current ratio?
►Borrow short-term to finance additional fixed assets
►Issue long-term debt to buy inventory
►Sell common stock to reduce current liabilities
►Sell fixed assets to reduce accounts payable
Question No: 6 ( Marks: 1 ) - Please choose one
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Which of the following are incorporated into the calculation of the Du -Pont Identity?
I. Return on assets II.
Equity Multiplier
III. Total Assets Turnover
IV. Profit Margin
►I, II, and III only
►I, III, and IV only
► II, III and IV only pg 45
►I, II, III, a n d IV
Question No: 7 ( Marks: 1 ) - Please choose one
The concepts of present value and future value are:
►Directly related to each other
►Not related to each other
►Proportionately related to each other
►Inversely related to each other
Question No: 8 ( Marks: 1 ) - Please choose one
Which of the following is a special case of annuity, where the stream of cash flows continues forever?
►Special Annuity
►Ordinary Annuity
►Annuity Due
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►Perpetuity
Question No: 9 ( Marks: 1 ) - Please choose one
Which of the following is an unsecured bond for which no specific pledge of property is made?
►Mortgage
►Debenture
►Collateral
►Note Payable
Debenture is an unsecured bond
for which no specific pledge of
property is made
Question No: 10 ( Marks: 1 ) - Please choose one
Which of the following type of return refers to the percentage change in the amount of money you have?
►Nominal return
►Real return
►Inflation return
►None of the given option
Your nominal return is the
percentage change in the amount
of money you have.
Question No: 11 ( Marks: 1 ) - Please choose one
When real rate is _____, all interest rates will tend to be _____. ►Low; higher
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►High; lower
►High; higher
►None of the given options
When real rate is high, all interest
rates will tend to be higher and
vice versa.
Question No: 12 ( Marks: 1 ) - Please choose one
Which of the following is the extra yield that investors dem and on a taxable bond as a compensation for the unfavorable tax treatment?
►Interest rate risk premium
►Inflation risk premium
►Default risk premium
►Taxability premium
Investors demand extra yield on a taxable bond as a compensation for the unfavorable tax treatment, known as
taxability premium
Question No: 13 ( Marks: 1 ) - Please choose one
In which type of the market, previously issued...
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