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

Question No: 1 ( Marks: 1 ) - Please choose one
A major disadvantage of the corporate form of organization is the ______________.
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Inability of the firm to raise large sums of additional capital
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Double taxation of dividends
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Limited liability of shareholders
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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?
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Trade receivable
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Cash and cash equivalent
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Inventory
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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.
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5.00
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7.20
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10.00
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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?
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90 million
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120 million
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140 million
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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 ____________.
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25%
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30%
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35%
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40%