ACC501 Final Term Past Paper Fall 2008 Paper 3

FINALTERM EXAMINATION

Fall 2008 ACC501Business Finance (Session - 1) Marks: 81

Q1. Which of the following is the difference between current assets and current liabilities? (1 marks)

Surplus Asset Short-term Ratio Working Capital Current Ratio

Q2. A business owned by a single person is known as: (1 marks)

Sole-proprietorship General partnership Limited partnership Corporation

Q3. In a common-size balance sheet, all items are shown as a percentage of: (1 marks)

Total Assets Total Liabilities Total Owner s Equity

Q4. A com pany's ability to m eet long-term obligations can be estim ated by using which of the following set of ratios? (1 marks)

Liquidity Ratio Solvency Ratios Asset Management Ratios Market Value Ratios

Q5. According to Du Pont Identity, ROE is affected by which of the following? (1 marks)

Operating efficiency Asset use efficiency Financial Leverage

Q6. Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods? (1 marks)

Ordinary annuity Annuity due Perpetuity

Q7. A portion of profits, which a company distributes among its shareholders, is known as: (1 marks)

Dividends Retained Earnings Capital Gain Interest

Q8. What am ount a borrower would pay at the end of fourth year with a 4-year, 12%, interest-only loan of Rs. 3,000? (1 marks)

Rs. 360 Rs. 2,000 Rs. 3,000 Rs. 3,360

Q9. A com pany issues bonds with a Rs. 1,0 0 0 face value. What is the coupon rate if the coupon payments of Rs. 45 are paid every 6 months? (1 marks)

3 percent 6 percent 9 percent 12 percent

Q10. Given two bonds identical but for maturity, the price of the longer-term bond will change _ _ _ _ _ _ _ _ that of the shorter-term bond, for a given change in m arket interest rates. (1 marks)

More than Less than