FIN621 Finalterm Solved Paper 2011
Which of the following items are NOT added back to the net income figure (which is found on the Income Statement) to arrive at cash flows from operations?
ØDepreciationØDeferred tax
ØAmortization
ØInvestments
Which of the following accounts will be debited, when increased?
ØLiabilities and expenses
ØAssets and equity
ØAssets and expenses
ØEquity and revenues
The users of a statement of cash flows are mostly interested in:
ØNet cash flow from operating activities
ØNet cash flow from investing activities
ØNet cash flow from financing activities
ØNet cash flow from non-cash transactions
A business has purchased a building on cash, how it would be recorded in the journal?
ØBuilding - Debit; Cash - Credit
ØCash - Debit; Building - Credit
ØBuilding - Debit; Owner’s equity - Credit
ØBuilding - Debit; Accounts Payable - Credit
The current ratio will be excessively very high in which of the following inventory costing Methods?
Ø FIFO
Ø LIFO
Ø Average cost
Ø Specific identification
Which of the following is a type of preferred stock that entitles the holder to a fixed dividend and, in addition, to the right to get any surplus profits after payment of agreed levels of dividends to holders of common stock?
Ø►In arrears preferred shares
Ø►Call able preferred shares
Ø►Cumulative preferred shares
Ø►Participating preferred shares
There are five main kinds of current assets. Which of the following is NOT among them?
ØCash and equivalents
ØDeferred income
ØAccounts receivable
ØPrepaid expenses
What will be the effect on the EPS of the company, if it paid stock dividend on common stock?
ØIncrease
ØDecrease
ØNo effect
ØCan not be found from the given information
What will be the effect of appropriated retained earnings on the rate of return on stockholder's equity?
ØIncrease
ØDecrease
ØNo effect
ØCan not be found from the given information
Which one of the following statement indicates the Inventory turnover ratio?
ØHow quickly company prepared its inventory
ØHow quickly company converts its inventory into cash
ØHow quickly company purchases its inventory
ØHow quickly company sells its inventory
Which of the following options indicate how quickly accounts receivables are converted into cash?
a)Accounts receivable turnover
b)Days to collect accounts receivable
c)Working capital
d)Total assets turnover
Ames Corporation's net accounts receivable were Rs. 750,000 on December 31, 20X1, and Rs. 1,250,000 on December 31, 20X2. Net cash sales for 20X2 were Rs. 3,300,000. The accounts receivable turnover ratio for 20X2 was 16. What were the total net sales for 20X2?
a)
b)
c)
d)
Nestle Pakistan Limited is an example of which of the following types of businesses?
a)Manufacturing
b)Service
c)Merchandise
Whole seller
LONG QUESTION.
- A COMPANY GETS LOAN OF RS.80,000 WHICH IS PAYABLE IN 90 DAYS WHAT IS THE EFFECT OF ON THE WORKING CAPITAL.
- ENLIST OF THE OWNER EQUITY SHOWS ITEMS IN BALANCE SHEET.
- CALCULATE TOTAL ASSET TURN OVER RATIO.
- ONE IS TO MAKE OWNER EQUITY STATEMENT.
- WHICH THING EFFECT THE RATION OF A FIRM ENLIST ANY 5.
