Sunday, August 23, 2009

Virtual Uni ACC501 Questions

For more papers please view www.vuhelp.com


Question No: 1 ( Marks: 1 ) - Please choose one

A major disadvantage of the corporate form of organization is the ______________.

.

Inability of the firm to raise large sums of additional capital

.

Double taxation of dividends

.

Limited liability of shareholders

.

Limited life of the corporate firm

Question No: 2 ( Marks: 1 ) - Please choose one

Which one of the following current asset is not treated as a cash flow from operating activities?

.

Trade receivable

.

Cash and cash equivalent

.

Inventory

.

Short term investment

Question No: 3 ( Marks: 1 ) - Please choose one

Suppose you can earn a 7.2 percent interest rate per year. According to the rule of 72, it will take

approximately ___________ years to double your money.

.

5.00

.

7.20

.

10.00

.

100.0

Question No: 4 ( Marks: 1 ) - Please choose one

Rahim Corporation has a cash coverage ratio of 7 times. It’s earning before interest and tax is

Rs.900 million. It has total assets of Rs.3 billion. The company has a policy of charging 5 % annual

depreciation. By using the above information, what would be the interest expense for the year?

.

90 million

.

120 million

.

140 million

.

150 million

Question No: 5 ( Marks: 1 ) - Please choose one

Suppose ZM Corporation has a debt to equity ratio of 1.50 times. It has the return on assets of

14%. The return on equity would be ____________.

. 25%

.

30%

.

35%

.

40%

Question No: 6 ( Marks: 1 ) - Please choose one

Lets Tulips Corporation has return on assets for the year is 14 % .The Corporation has a policy to

retain 40 percent of their income. Then the Corporations internal growth rate would be

___________.

.

5.246 %

.

5.754 %

.

5.932 %

.

6.589 %

Question No: 7 ( Marks: 1 ) - Please choose one

If the interest rate is 24 % compounded quarterly, what would be the 5-year discount factor?

.

3.10585

.

3.20714

.

3.50152

.

3.80153

Question No: 8 ( Marks: 1 ) - Please choose one

Suppose you expect to receive Rs.3,000 per year forever. The opportunity rate is 12 %.The present

value of this would be ______________.

.

Rs.20,000

.

Rs.23,000

.

Rs.25,000

.

Rs.28,000

Question No: 9 ( Marks: 1 ) - Please choose one

The bonds are classified as ___________ if the maturity of the bond is less than 10 years when

issued.

.

Term finance certificate

.

Debentures

.

Notes

.

None of the given options

Contact vuhelps@gmail.com

Regards

Vuhelps

No comments:

Advertisement