sample midterm

sample midterm - CARLETON UNIVERSITY BUSI 1001 Midterm...

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1 CARLETON UNIVERSITY BUSI 1001 Midterm Examination DURATION: 2 hours NOTES: 1. Non-programmable calculators without an alpha-storage capability may be used. 2. No Palm Pilots, Pagers, Cellular Phones, PDAs or other electronic or telecommunication devices are allowed in the examination room. 3. Question 1 is to be answered on the Scantron Sheet provided for this purpose. There are 3 other questions. These are to be answered in your exam booklet. 4. The Scantron Sheet must be completed in pencil. The following information must be provided on the Scantron Sheet by filling in the appropriate bubbles: name student number class section (Aor T) answers for your questions 5. At the end of the exam, hand in your Scantron Sheet and your answer booklet separately ensuring that your name, student number and section number are recorded on both documents . You may keep the exam. Question 1 Multiple Choice (56 marks) There are 28 multiple choice questions. 2 marks for each question 1. Which of the following is not an advantage of the corporate form of business organization? a. No personal liability b. Easy to sell (transfer ownership) c. Simple to set up d. Easy to raise funds 2 . External users want answers to all of the following questions except a. Is the company earning satisfactory income? b. Will the company be able to pay its debts as they come due? c. Will the company be able to afford employee pay raises this year? d. How does the company compare in profitability with competitors?
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3. Buying and selling products are examples of a. operating activities. b. investing activities. c. financing activities. d. delivering activities 4. Dividends are reported on the a. statement of earnings. b. statement of retained earnings. c. balance sheet. d. statement of earnings and balance sheet. 5. If the retained earnings account increases from the beginning of the year to the end of the year, then a. net earnings are less than dividends. b. a net loss is less than dividends. c. additional investments are less than net losses. d. net earnings are greater than dividends. 6. A measure of profitability is the a. current ratio. b. debt to total assets ratio. c. return on assets ratio. d. working capital. Use the following information for questions 7- 8. Sweney Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $60,000 from the bank with a 3-month note payable. 7. What effect did the borrowing transaction have on the amount of Sweney Company's working capital? a. No effect b. $60,000 increase c. $90,000 increase d. $60,000 decrease 8. What effect did the borrowing transaction have on Sweney Company's current ratio? a. The ratio remained unchanged.
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This note was uploaded on 11/01/2009 for the course BUSI 1001 taught by Professor Dontknow during the Spring '08 term at Carleton CA.

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sample midterm - CARLETON UNIVERSITY BUSI 1001 Midterm...

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