1) Lee is running a restaurant; He needs your help to record these transactions: closing stock of 250 bottles of wine at a cost of 2750 has not been recorded. What entry should Lee post?

A. DR closing stock (statement of financial position) 2750; CR opening stock (cost of sales) 2750

B. DR stock (statement of financial position) 2750; CR Purchases (cost of sales) 2750

C. CR stock (statement of financial position) 2750; DR purchases (cost of sales) 2750

D. DR opening stock (statement of financial position) 2750; CR closing stock (cost of sales) 2750

2) Z limited is considering the replacement of some older carpet manufacturing equipment. Its objective is to improve the efficiency of operations. The companys finance department has complied date to conduct a marginal cost benefit analysis for the proposed equipment replacement.

What is the net benefit of the proposed new equipment?

The cash outlay for the new equipment would be $600,000

The value of the old equipment (measured in todays

Pounds) would be $250,000

The total benefits from the new equipment

(Measured in todays pounds) would be $900,000

The benefits of the old equipment over a similar

Period of time (measured in todays pounds) $300,000

A. 350,000

B. 300,000

C. 250,000

D. 520,000

3) The________ is created by a number of institutions and arrangements that allow the suppliers and demanders of long-term funds to make transactions

A. commodities market

B. capital market

C. money market

D. forex market

4) Which of the following is true of risk?

A. Riskier investments tend to have lower returns as compared to gilts which are risk free

B. Risk is a measure of the uncertainty surrounding the return that an investment will earn

C. higher the risk associated with a security the lower it is in return

D. risk and return are inversely proportionate to each other

5) The future value of 280 received today and deposited at 8% for three years is approximately_________

A. 252

B. 159

C. 353

D. 253