ACC501 Final Term Past Paper Fall 2006

FINALTERM EXAMINATION

FALL 2006 ACC501 - BUSINESS FINANCE (Session - 1 ) Marks: 60 Time: 120min

Student Name:

Center Name/Code:

Exam Date: Saturday, February 03, 2007

All questions are compulsory. This exam consists of 15 Multiple Choice Questions (MCQ’s), 5 True/False Questions, 5 Fill in the Blanks,5 Short Questions and 2 Numerical Questions.

Q1. 15 are MCQs carrying 1 Mark each, Question No.16-20 are True/False Questions carrying 1 Mark each, Question No.21-25 are fill in the blanks carrying 1 Mark each, Question No.26-30 are short questions carrying 3 Marks each and Question No.31-32 are numerical questions carrying 10 Marks each.

For each MCQ, read the choices available carefully and select the choice which you consider is the most suitable, by clicking on the appropriate check box.

You are required to show all the working of short questions as well as Numerical questions. This examination is closed book, closed notes and closed neighbour. Do not ask questions about the contents of this examination from anyone. The use of calculator and financial tables is allowed. You may wish to pace yourself with your own watch, but the Supervisor will be the official timekeeper of the test. Failure to comply with the supervisor’s directions will result in your test being cancelled. Please comply with supervisor’s directions to avoid any unpleasant event. Question

Question Marks Question Marks Question Marks

Q1. A series of constant, or level, cash flows that occur at the end of each period for some fixed number of periods is called a/an: (1 marks)

1. Present Value
2. Future Value
3. Ordinary Annuity
4. Ordinary Share

Q2. The Ratios showing the ability of a firm to pay its bills in short-run are called: (1 marks)

1. Leverage Ratios
2. Liquidity Ratios
3. Profitability Ratios
4. Market Value Ratios

Q3. GAAP stands for: (1 marks)

1. Generally Accepted Accounting Principles
2. Generally All-rounder Accounting Principles
3. General Accepting Accounts Principles
4. None of the given options

Q4. A contract between the bond issuer and bond holder is called: (1 marks)

1. Bond Indenture
2. Bond Debenture
3. Bond Value
4. None of the given options

Q5. Suppose you have a portfolio comprised of two securities X and Y. In the portfolio, 60 shares are of stock X valued at Rs.10 per share and 40 shares are of stock Y valued at Rs.3 per share. What is the approximate weight of stock X in the portfolio? (1 marks)

1. 23 %
2. 40 %
3. 60 %
4. 83 %

Q6. In which market, previously issued securities are traded among investors? (1 marks)

1. Primary Market
2. Secondary Market
3. Tertiary Market
4. None of the given options

Q7. Which of the following is the present value of a series of future net cash flows that will result from an investment, minus the amount of the original investment? (1 marks)

1. Present Value
2. Future Value
3. Net Present Value
4. Terminal Value