ACC501 Practice Questions with Solutions

ACC501 Practice (Numerical) Questions · (Lesson # 1 – 18) · Questions:

1. The following data is available for ZT Corporation for the year ended 31 December 2023. You are required to prepare the Balance Sheet of this corporation:

Short-term debt of Rs. 40,000 Long-term debt of Rs. 500,000 Current assets of Rs. 240,000 Net fixed assets of Rs. 650,000

2. Calculate the Shareholder’s Equity of the ZT Company, if the company has:

Items

Rs. (in millions) Cash and equivalents

Property, plant, & equipment Long term debts

3. Ali Corporation has a taxable income of Rs. 85,000. What will be the Total Tax for this Corporation? Use the following schedule for tax calculations.

Taxable Income Tax Rate (%).

Rs. 0 50,000

50,001 - 75,000

75,001 - 100,000

100,001335,000 4. From the following information of Alfa Corporation, calculate the “Operating Cash Flow”: Rs. Sales 13,500 6,400 Deprecation 12,00 Interest Expense Tax

5. What would be the Net Capital Spending if Alfa Corporation had fixed assets of Rs. 100,000 at the start of the accounting year whereas at the end of the same accounting period, the value of these assets is Rs. 150,000 while the depreciation is of Rs. 20,000 as per the yearly income statement.

6. You are required to calculate Cash Flow to the Creditors and Cash Flow to the Stockholders from the following financial data:

Rs. (‘000)

Operating cash flow Capital spending Additions to net working capital Interest paid Retirement of debt Proceeds from new debt sales

Repurchase of Stock Proceeds from new stock issue

7. From the given information of Alfa Corporation, you are required to calculate the Cash Flow from the firm’s assets and the Cash Flow to the investors:

Rs. (‘000)

Operating cash flow Debt Capital spending Equity Additions to net working capital 8. From the given information, prepare the Cash Flow Statement of Alfa Corporation by estimating cash flows from operations, investments, and financing:

Rs. (in '000)

8,500 Acquisition of fixed assets 19,700 Proceeds from long-term debt sales 8,500 4,200 Sales of fixed assets 2,400 Increase in accounts receivable 2,300

9. From the following data pertaining to XYZ Corporation, you are required to calculate the Current Ratio along with complete calculations:

Items

Rs. Cash 450,000 525,000 830,000 Land and Machinery 620,000 Inventory 310,000 120,000

10. The following data represents the assets side of a corporation. You are required to convert this data into a common size (standardized) statement.

Rs. (

Million)

Cash