Fin621 final term solve paper current spring July 2011

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Fin621 final term solve paper 2011


The trial balance shows Supplies of Rs.1,350 and Supplies Expense of Rs.0. If Rs.600 of supplies are on hand at the end of the period, the adjusting entry would be:
• 
• 
• 
• 
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?
•  Depreciation
•  Deferred tax
•  Amortization
•  Investments
Which of the following accounts will be debited, when increased?
•  Liabilities and expenses
•  Assets and equity
•  Assets and expenses
•  Equity and revenues
The users of a statement of cash flows are mostly interested in:
•  Net cash flow from operating activities
•  Net cash flow from investing activities
•  Net cash flow from financing activities
•  Net cash flow from non-cash transactions
A business has purchased a building on cash, how it would be recorded in the journal?
Select correct option:
•  Building - Debit; Cash - Credit
•  Cash - Debit; Building - Credit
•  Building - Debit; Owner’s equity - Credit
•  Building - Debit; Accounts Payable - Credit

The current ratio will be excessively very high in which of the following inventory costing Methods?
•  FIFO
•  LIFO
•  Average cost
•  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?
•  ►In arrears preferred shares
•  ►Call able preferred shares
•  ►Cumulative preferred shares
•  ►Participating preferred shares
There are five main kinds of current assets. Which of the following is NOT among them?
Select correct option:

•  Cash and equivalents
•  Deferred income
•  Accounts receivable
•  Prepaid expenses
What will be the effect on the EPS of the company, if it paid stock dividend on common stock?
•  Increase
•  Decrease
•  No effect
•  Can 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?
•  Increase
•  Decrease
•  No effect
•  Can not be found from the given information
Which one of the following statement indicates the Inventory turnover ratio?
•  How quickly company prepared its inventory
•  How quickly company converts its inventory into cash
•  How quickly company purchases its inventory
•  How quickly company sells its inventory

Which of the following options indicate how quickly accounts receivables are converted into cash?
I. a) Accounts receivable turnover
I. b) Days to collect accounts receivable
I. c) Working capital
I. 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?
I. a)
I. b)
I. c)
I. d)

Nestle Pakistan Limited is an example of which of the following types of businesses?
I. a) Manufacturing
I. b) Service
I. c) Merchandise
Whole seller
LONG QUESTION.
I. A COMPANY GETS LOAN OF RS.80,000 WHICH IS PAYABLE IN 90 DAYS WHAT IS THE EFFECT OF ON THE WORKING CAPTIAL.
I. ENLIST OF THE OWNER EQUITY SHOWS ITMES IN BALANCE SHEET.
I. ONE QUESTION ABOUT TO CALCULATE TOATL ASSET TURN OVER RATIO.
(FOR 2 YERS.. TOTAL ASSEST AND SALES ARE GIVEN NOT DIFICLUT)
I. ONE IS TO MAKE OWNER EQUITY STATEMENT.
I. WHICH THING EFFECT THE RATION OF A FIRM INLIST ANY 5.