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A French company started operations in Oman in 2015. Since from that time they have made a good image of the company. The company is

A French company started operations in Oman in 2015. Since from that time they have made a good image of the company. The company is interested to know the return on investment based on the information given; sales RO 80000, cost RO 50000, investment RO 300000 and average profit is RO 40000. So, the ROI is _________.

a. 10.00%

b. 16.66%

c. 23.33%

d. 13.33%

Al Bustan LLC is considering a project where the initial investment is RO 10000 and the project is expected to generate RO 4570 every year for 4 years. Now the company is thinking to take a loan from bank muscat. The bank says that the loan must be repaid in 3 years. If we calculate the payback period then the decision of the company will be __________.

a. Reject the project as the total profit generated is less than other opportunity

b. Reject the project as it is taking much time in recovering initial investment

c. Accept the project as the initial investment is recovered

d. None of the options

During the year 2020, Ali Al Shaibani group of companies made the total credit purchases worth RO 912500. For the accounting year 2020, the opening accounts payable of the company were RO 125000, and the closing accounts payable of the company was RO 75000. Using the information, calculate the Average Payment period of the company. (Consider 365 days in a year)

a. 40

b. 42

c. None of the options

d. 80

Given the data of Complex LLC, opening balance of account payable: RO 12500, closing balance of account payable: RO 11750, net credit purchases are RO 27000. The average payment period for the company is _________.

a. 161.92

b. 163.91

c. 162.19

d. None of the options

Al Huda Pharmacy, Oman applies the basic EOQ model, if the demand is 6,000 units per year, ordering cost RO 60, carrying cost RO 2 per unit, approximately what is the Economic Order Quantity?

a. 620

b. 600

c. 540

d. 490

Modern LLC was established on December 2002. Till now they are working with a steady growth. One of the reasons is good working capital management. Given the data for the last year, opening account receivable RO 6500, closing account receivable RO 8900, net credit sales RO 25000. The average receivable collection period is __________.

a. None of the options

b. 114.20 days

c. 112.40 days

d. 1616.42 days

Mohammed has RO 6000 which he is not going to use for the next few years. If he deposits it in saving account which pays 8% interest for 10 years, then the future value will be ____________ (Table value 2.15982)

a. RO 12985.92

b. RO 11985.23

c. RO 14782.29

d. None of the options

Muscat Ceramic Company asks Ms. Mona, the accountant of the company to calculate the total liabilities from the details provided to her. The details are creditors RO 15000, bank overdraft RO 15000, cash in hand RO 20000, stock RO 30000, plant and machinery RO 15000 and cash at bank RO 16000.

a. RO 30000

b. RO 46000

c. None of the options

d. RO 42500

explanation not needed

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