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Thread: acc501 mid term current solve paper fall November 2011

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    18 acc501 mid term current solve paper fall November 2011

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    acc501 mid term current solve paper fall November 2011 for full solve papers see attachment

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    Question No: 1 ( Marks: 1 ) - Please choose one
    A major disadvantage of the corporate form of organization is the ______________.

    Inability of the firm to raise large sums of additional capital

    Double taxation of dividends

    Limited liability of shareholders

    Limited life of the corporate firm
    Question No: 2 ( Marks: 1 ) - Please choose one
    Which one of the following current asset is not treated as a cash flow from operating activities?

    Trade receivable

    Cash and cash equivalent

    Inventory

    Short term investment
    Question No: 3 ( Marks: 1 ) - Please choose one
    Suppose you can earn a 7.2 percent interest rate per year. According to the rule of 72, it will take approximately ___________ years to double your money.

    5.00

    7.20

    10.00

    100.0
    Question No: 4 ( Marks: 1 ) - Please choose one
    Rahim Corporation has a cash coverage ratio of 7 times. It’s earning before interest and tax is Rs.900 million. It has total assets of Rs.3 billion. The company has a policy of charging 5 % annual depreciation. By using the above information, what would be the interest expense for the year?

    90 million

    120 million

    140 million

    150 million
    Question No: 5 ( Marks: 1 ) - Please choose one
    Suppose ZM Corporation has a debt to equity ratio of 1.50 times. It has the return on assets of 14%. The return on equity would be ____________.

    25%

    30%

    35%

    40%
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