ACC501 Solved MCQs from Mega Quiz File with References

ACC501 First Quiz of spring 2012

before midterm solved by Masood khan

In 3 years you are to receive Rs. 5,000. If the interest rate were to suddenly decrease, the present value of that future amount to you would:

Fall · Rise · Remain same · Cannot be determined with the given information

Head of Treasury department reports to whom?

Financial and cost Accountant · Chief of financial officer · Cash and credit manager · Board of directors

A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?

12 % · 25 % · 40 % · 60 %

The most important item that can be extracted from financial statements is the actual __________ of the firm.

Net Working Capital · Cash Flow page no#22 · Net Present Value

Which of the following form of business organization is least regulated?

Time value of money is an important finance concept because:

It takes risk into account · It takes time into account · It takes compound interest into account

Which of the following is the acronym for GAAP?

Generally Applied Accountability Principles · General Accounting Assessment Principles · Generally Accepted Accounting Principles · General Accepted Assessment Principles

Which of the following is measured by profit margin?

Operating efficiency Operating efficiency (as measured by profit margin)#46

Asset use efficiency · Financial policy · Dividend policy

Rule of 72 for finding the number of periods is fairly applicable to which of the following range of discount rates?

2% to 8% · 4% to 25% · 5% to 20% p#60 · 10% to 50%

Decisions about “how to raise money” and “what to do with it” are part of which of the following?

Business Finance P#1 · Change management · Costing for accounting

interest?

It is calculated by multiplying principal by rate multiplied by time. P#50

Which of the following is CORRECT regarding the present value discount factor?

It is greater than 1.0 · It is equal to zero when discount rate is zero · It increases as the time period increases · It decreases as the discount rate increases

Which of the following is(are) the basic area(s) of Finance?

Financial institutions · International finance · Investments · All of the given options p#1

Currently Mr. Safdar has a saving of Rs. 70,000. On the day of his retirement after 20 years, he wants to have Rs. 1,000,000 available for his retirement needs. What is the rate of return he needs to earn to reach his goal?