CSSA trial 04 (1 Viewer)

[monkey187]

I dunno mebbe im just an idiot bus ome of the MC dont make ne sense

Q12

The australian company Vanderlay Industries places an order with US based Elecron Inc. for the supply of digital video cameras. The order is made in June for delivery and payment in 180 days.

Which form of risk is Electron Inc. most exposed to?

(A) Currency risk
(B) Business risk
(C) Credit Risk
(D) Commodity risk

The answer is A but you wouldnt think that the exporter is at risk of currency fluctuations beacause they will want to be paid in $US. Meaning only the australian company is exposed to currency risks. I would think that a bigger risk would be the Credit risk, wether the Australian company pays or not?

and

Q19

Current Liabilities $23 000
Non-Current Liabilities $27 000
Owners Equity $150 000
Debt to Equity average 2:1

What is the value of the debt to equity ratio for Jepordy Enterprises?

(A) 0.15:1
(B) 0.18:1
(C) 0.3:1
(D) 1:3

The answer is C but isnt it total debt/total equity which gives you 1:3

unles gearing ratio always has to be in format x:1 ? which i dunno

any help would b great

 

[Maianbarian]

I agree with you on the first one, it should definatly be c. With the second one 0.3:1 is the same as 1:3 so I'm guessing they always have to be in the form x:1. Hmmm very odd, hopefully someone wiser than me will shed some light on this.

 

[ar5ena1]

lol, catholic trial is well fucked.

Q12 is A only because the others don't make sense. Credit risk? The american company isn't paying so obviously note.

Q19 They are both correct, one may be "more" correct, but you'd NEVER get that in the hsc.

 

[vanbasten]

HAHA Vanderlay......Seinfeld.

 

[rainonmay]

How about question 5?
I got D.
How do u work out the expense ratio?

 

[monkey187]

Q12: the credit risk would be the 'credit rating' of the aus company as in the history of their ability to pay debts as in the chance that the american company will actually get paid

Q19: if one is 2 be more accuate then it would be 1:3 because this is more accurate then 0.3:1

a ratio of 0.33333333333333333333....:1 would b more accurate

 

[scorpiochic]

How about question 5?
I got D.
How do u work out the expense ratio?

hey the expense ratio is calculated by the particular expense over sales. in this question no particular expense is specified so the answer from memory is D. as for the other questions there were a total of three "wrong" answers in the catholic trial of 2004 however these answers were accepted by my school since they were given as the correct answers and different interpretations could be taken blah blah. anyway you are right with your answers that have been given on this page and like its been said you won't get a question like that for tomorrow!! hope this helps.
Good luck!!

 

[rainonmay]

hey the expense ratio is calculated by the particular expense over sales. in this question no particular expense is specified so the answer from memory is D. as for the other questions there were a total of three "wrong" answers in the catholic trial of 2004 however these answers were accepted by my school since they were given as the correct answers and different interpretations could be taken blah blah. anyway you are right with your answers that have been given on this page and like its been said you won't get a question like that for tomorrow!! hope this helps.
Good luck!!

Ok kewlz... for a moment there i was kinda freaked... i need to do good in biz...