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DUE DATE:
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1. Which of the statements below is TRUE about the Company Annual Report?
A.
B.
C.
D.
3. Company directors are required to include in the annual report the companys and its
subsidiaries financial statements as mandatorily required in the:
A.
B.
C.
D.
4. An annual report contains a great many statements and reports. Which one of the
following statements/reports is not covered either by statute or by accounting standards?
A
Periodic summary
Auditors' report
Directors' report
6. A financial report includes the items as stated in Part VI: Accounts and Audit, Company
Act 1965. The items are:
i.
Directors Report
ii.
Auditors Report
iii.
Directors Statement
iv.
Statutory Declaration
v.
Notice of Annual General Meeting
A.
B.
C.
D.
i, ii and iii
ii, iii and v
i, ii, iii and iv
All the above
7. The opinion given on the sufficiency of financial records kept by the company in
accordance to the stated act and compliance with the approved accounting standards can
be found in which of the following report?
A.
B.
C.
D.
Directors Report
Audit Committees Report
Chairmans Statement
Auditors Report
8. Which of the following items will typically be found in a corporate annual report?
A
Company budgets
9. Assume that you want to determine the amount of gross profit for a company. Which of
the following financial statements is the BEST source of this information?
A
10. An annual report contains a great many statements and reports. Which of the
following statements/reports is NOT required either by statute or by
accounting standards?
Financial highlights
A
B
Income statement
D
Chairman statement
11. All statements are TRUE about the horizontal analysis EXCEPT:
A. a percentage analysis of increases and decreases in related items in comparative
financial statement
B. a percentage analysis used to show the relationship of each component to the total
within a single statement
C. also known as Trend Analysis
D. an analysis that can compare two, three or more statements
12. A ratio that measures the instant debt-paying ability of a company is called:
A. current ratio
B. quick ratio
C. equity ratio
D. working capital
13. Which one is FALSE about debt ratio?
A. Important for the company to measure the extent of credit used to finance the asset
B. Allow company to plan the use of fund available to generate more income
C. Important to measure the percentage of total assets being financed by the creditors
D. Measured based on the ratio of total assets to total liabilities
A.
B.
C.
D.
14. A business should keep adequate inventory on hand to meet the needs of its customers
and operations. However, an excessive amount of inventory can:
i.
reduce solvency by tying up funds
ii.
increase insurance expense and storage cost
iii.
increase funds that could be used elsewhere to improve operations
iv.
risk of losses because of price declines or obsolescence
i, ii and iii
i and ii
i, ii and iv
All the above
18. In a vertical analysis of Statement of Financial Position, which of the following is given a
designation of 100 percent?
A. Cost of goods sold
B. Total assets
C. Total liabilities
D. Net income
19. If sales for 2010 (the base year), 2011 and 2012 are RM20,000, RM15,600 and RM24,600
respectively, the trend analysis for 2011 and 2012 shows:
A. 62.4% and 128%
B. 156% and 118%
C. 128.2% and 133%
D. 78% and 123%
20. How the collection of an accounts receivable would affects the current ratio and the quick
ratio respectively?
A. No effect on current ratio; increase in quick ratio
B. Increase in current ratio; increase in quick ratio
C. No effect on current ratio; no effect on quick ratio
D. Decrease in current ratio; decrease in quick ratio
RM 60,000
90,000
150,000
300,000
Imara Corporation
Statement of Comprehensive Income
For the Year Ended 31 December 2012
Net sales
Cost of goods sold
Gross margin
Operating expenses
Income before income taxes
Income tax expense
Net income
RM80,000
45,000
35,000
15,000
20,000
5,000
15,000
Note: IMARA had 6,000 units of ordinary share issued and outstanding. There is no change
in shareholders' equity balance from last year. The market price of IMARA ordinary share
on 31 December 2012 was RM20. IMARA paid dividends of RM1.60 per share during
2012.
21. What is the profit margin for IMARA?
A. 18.75%
B. 43.75%
C. 25.0%
D. 42.86%
22. What is the debt ratio for IMARA?
A. 20%
B. 30%
C. 40%
D. 50%
Teguh Bina Sdn Bhd had a balance in the Accounts Receivable account of RM820,000 at
the beginning of the year and a balance of RM880,000 at the end of the year. Net sales
during the year amounted to RM6,120,000. The receivables turnover ratio was
A. 7.2 times.
B. 7 times.
C. 6.9 times.
D. 6.8 times.
26.
27.
Which one of the following ratios would NOT likely be used by a short-term creditor in
evaluating whether to sell on credit to a company?
A. Current ratio
B. Acid-test ratio
C. Asset turnover
D. Receivables turnover
28.
Bina Indah Bhd had net income of RM160,000 and paid dividends to common
stockholders of RM40,000 in 2010. The weighted average number of shares outstanding in
2010 was 50,000 shares. Bina Indahs common shares is selling for RM50 per share on the
Bursa Malaysia. Bina Indahs price-earnings ratio is
A. 3.2 times.
B. 15.6 times.
C. 10 times.
D. 5 times.
29.
30.
31.
32.
Which of the following factors might suggest that a company is having difficulty selling its
inventory?
A. An increase in receivables
B. A buildup of inventory balances
C. An increase in total debt
D. An increase in interest expense