Question 4 A. Which of the items you can find on a sole-trader financial statement but not on a limited company financial statement. a) Corporation tax b) Dividends c) Drawings d) Debentures Question 5 arises when a customer who owes money to the business for goods or services received on credit becomes unable to pay the amount due. a) A prepayment b) An accrual c) A bad debt d) A provision for doubtful debts Question 6 Marks Co. is considering a new project with an initial cost of 1.3 million. In each subsequent year, the project will generate positive cashflows as follows: Project life: 5 years Year Cash flows 1 2 3 360,000 550,000 710,000 340,000 100,000 4 5 Marks Co. directors have agreed that a discount rate of 15% would be required from this project. Required: Calculate the IRR for the new project and choose the correct answer below. a) 15.50% b) 19.89% c) 8.75% d) 10.85% Question 7 Earnings per share is........ a) an investment ratio that can be used to measure the return and performance of the company's shares. b) a profitability ratio that looks at how effectively the short-term assets and liabilities of the business are being managed. c) a liquidity ratio That looks at the ability of the business to cover its short-term liabilities as they fall due. d) None of the above