ACC501 Final Term Current Solved Paper 2011

1 to 62mcqs · =62 marks · 63 to 65 subjective=3*3 =9marks · 66to 69 subjective=5*4 =20marks · Total paper 91 marks

1. The time between sale of inventory and collection of receivable.

a account receivable

b operation cycle c inventory period

2. allow a bank to substitute its creditworthiness for the customer, for a fee is called___________-

a open bank account b commercial draft c promisory note

d banker accetptance

3. Standard deviations for Investment A and Investment B are 25% and 12% respectively. This indicates that :

Investment A is less volatile than Investment B Investment B is equally volatile to Investment A

Investment A is more volatile than Investment B

Investment B is more volatile than Investment A

4. find the average 2%,5%,6%,8%

a 5%

b 5.25 %

c 6%

d 8%

5 what is standard deviation of thise averages 2%,5%, 7%

6. As the dividend is always same for a zero growth stock, so the stock can also be viewed as

Q7. Which of the following statement shows revenue, expense, and net worth as of a specific date?

a balance sheet

b income statement

c cashflow

8. which of the following character is not a systematic risk

market risk

interest risk

inflation risk

strike call in a company

9. A company has a two director and 1 shareholder which hav 25 power of share the voter for director is a 100 b150

c50

d25

10. An investment will be _________ if the IRR doesn’t exceeds the required return and _________ otherwise.

Accepted; rejected Accepted; accepted Rejected; rejected

Rejected; accepted

Q11. Which of the following is the overall return the firm must earn on its existing assets to maintain the value of the stock?

IRR (Internal Rate of Return) MIRR (Modified Internal Rate of Return)

WACC (Weighted Average Cost of Capital)

AAR (Average Accounting Return)

Q12. Which of the following is the return that firm’s creditors demand on new borrowings ?

Cost of debt

Cost of preferred stock Cost of common equity Cost of retained earnings

Q13. In which type of projects, the unequal lives of the projects do affect the analysis ?

Mutually exclusive Dependent

Independent

Correlated

14. Mr. Naveed has bought 100 shares of a corporation one year ago at Rs. 23 per share. Over the last year, he received a dividend