ACC501 Current 11 Solved Finalterm Papers and Important
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.1 55 , 0 0 0
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
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?
► ( 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
Which of the following are incorporated into the calculation of the Du -Pont Identity?
I. Return on assets II.
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?
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?
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?
►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
►None of the given options
When real rate is high, all interest
rates will tend to be higher and
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
Investors demand extra yield on a taxable bond as a compensation for the unfavorable tax treatment, known as
Question No: 13 ( Marks: 1 ) - Please choose one
In which type of the market, previously issued...