1.Which of the following would NOT adversely affect return on equity?
a.an increase in company income tax
b.transfers from retained profits to general reserve
c.reduced margins in an aggressive market place
d.none of the above; all would adversely affect return on equity
2.The following question relates to PQR Ltd, which has the following ratios: Return on assets, (ROA) 12%; Return on equity (ROE) 14%; and current ratio (CR) of 2:1.
Additional credit sales of $2 million (cost price $1.5 million) are made. This transaction will:
a.increase ROA, ROE and CR
b.increase ROA and ROE but not CR
c.increase ROA and CR but not ROE
d.do none of the above
3. Disclosure of information in sustainability reports is determined by:
a.the organization’s reporting
b.accounting standards
c.Australian Securities Industry Commission
d.company law reporting requirements.
4. Measurement and reporting of climate change related information is of use to stakeholders to:
Answer
a.evaluate the level of dividend they may receive
b.understand the impact of the business operations on the environment
c.identify and evaluate sustainability issues
d.Determine the financial performance of the company.
5.The average inventory of Dyer Ltd for year ended 31 December 2008 was $70 000. The number of days’ inventory on hand was 91.25 days. What was the cost of goods sold for the year?
Answer
a.$259 000
b.$280 000
c.cannot be determined from the information provided
d.none of the above
a.an increase in company income tax
b.transfers from retained profits to general reserve
c.reduced margins in an aggressive market place
d.none of the above; all would adversely affect return on equity
2.The following question relates to PQR Ltd, which has the following ratios: Return on assets, (ROA) 12%; Return on equity (ROE) 14%; and current ratio (CR) of 2:1.
Additional credit sales of $2 million (cost price $1.5 million) are made. This transaction will:
a.increase ROA, ROE and CR
b.increase ROA and ROE but not CR
c.increase ROA and CR but not ROE
d.do none of the above
3. Disclosure of information in sustainability reports is determined by:
a.the organization’s reporting
b.accounting standards
c.Australian Securities Industry Commission
d.company law reporting requirements.
4. Measurement and reporting of climate change related information is of use to stakeholders to:
Answer
a.evaluate the level of dividend they may receive
b.understand the impact of the business operations on the environment
c.identify and evaluate sustainability issues
d.Determine the financial performance of the company.
5.The average inventory of Dyer Ltd for year ended 31 December 2008 was $70 000. The number of days’ inventory on hand was 91.25 days. What was the cost of goods sold for the year?
Answer
a.$259 000
b.$280 000
c.cannot be determined from the information provided
d.none of the above