Fin621 Final Term Current Paper (Feb 2011)
Saturday, February 12, 2011 Posted In .Final Term Exam (Feb 2011) Edit This* Total 69MCQ's from which 8 where subjective questions
* The MCQ's was from cash flow,stockholder,ratio and some were about entries
* In one subjective question 3 different scenarios was given.Teacher asked to comment on the scenarios according to GAAP.
* In one I have to calculate quick ratio and current ratio.and comment on the ratio.
* In another scenario current ratio,quick ratio and debt ratio was given of ABC company and as a creditor I have take decision whether to given loan to the company or not?
THIS IS MY SUBJECTIVE PAPER
Q#1 some analyst argue that defferd tax should be included in the debt of the company. Why? 3
Q#2 list down the component of stockholders equity 3
Q#3 can a stock have negative price to earning ratio. Support your answer with valid reason. 3
Q#4 calculate return on investment 5 marks
Net income 40,000
Interest expense 10,000
Income tax expense 20,000
Liabilities 1, 50,000
Common share 1, 50,000
Retained earning 60,000
Q#5 calculate earning per share
Q#6 journal transactions