Uttar Pradesh Technical University (UPTU) 2009-1st Sem M.B.A --eter- Accounting and Financial Analysis - Question Paper
MBA
(I sem)Odd Semester Theory exam
Accounting and Financial Analysis
Printed Pngcs: 8 MBA013
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(FIIoH'in Paper ID and Roll No. to he lillcii in your Answer Book) | ||||||||||||||||
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(SEM l) ODD SEMESTER THEORY EXAMINATION 2009-10 ACCOUNTING & FINANCIAL ANALYSIS
PAPER ID : 7103
Time : 3 Honrs j I lohi! Murks : ]0I>
Note : The question paper contains three parrs, ull
parts are compulsory, Attempt all three sections as per instructions given in each section.
PART - I
Choose the correct answer : 20x1=20
1 The immediate recognition of loss is supported by the underlying principles of
(a) Matching
(b) Indgemenl
(c) Consistency
(d) Conservation
2 Withdraw Is by the proprietor would
fa) Reduce both assets and owner's equity.
(b) Reduce assets and increases liabilities.
(c) Reduce owner's equity and increase liability.
(d) No change.
JJ-7103] mi ll mil l llll ll ! |Contd...
Dual aspect concepts results in the accounting equation;
(a) Capital liabilities = Assets
(b) Revenue = Expenses
(c) Capital + profit = assets + expenses
(d) None of the above
On sale of old furniture owner's equity would
(a) Increase
(b) Decrease
(c) Remain unchanged
(d) May or may not change
Which of the following is a liability account7
(a) Account receivable
(b) Withdrawls
(c) Rent expenses
(d) Account payable
Outstanding wages is
(a) Personal account
(b) Real account
(c) Nominal account
7 Which of the following is correct1
(a) Gross profit +- purchase - sales = net profit
(b) Gross profit sales + administrative expenses = net profit
(c) Gross profit + sales + administrative expenses and other expenses + net profit
(d) Gross profit - administrative expenses ~ net profit
The cost of sales is equal to
(a) Opening stock - purchase
(b) Opening stock t- purchase
(c) Opening stock - purchase - closing stock
(d) Opening stock + purchase - closing stock.
9 Outstanding salaries appear in trial balance Rs. 2000 will be shown in
(a) Trading account
(b) Profit and loss account
(c) Balance Sheet
(d) Both (b) and (c) above
11 Liquidity ratios show a company's capacity to pay maturing current liabilities,
12 Debtor collection period is the ratio betueen credit sales and average debtor.
13 A company that is quite profitable may find it difficult to pay its accounts payable.
14 Interest paid on borrowing is capital expenditure.
15 Motor vehicles account is a personal account.
16 Cash flow statement is based upon accrual basis of accounting.
17 Reduction in stock is a source of cash
18 Raising of short term loans results in inflow of cash.
19 Flow of fund means increase or decrease in working capital.
20 Any transaction that increases working capital is a source of funds.
PART - II
Note : Attempt any three questions from the following :
10x3=30
1 What are the ratios which share holders and potential investors of a company are interested'2 Explain them.
2 HCL has a major expansion plan and has come out with a public issue of share and debentures As finance manager you wish to analyse how the funds have be deployed. Describe in detail the statement which you propose to prepare to save the above purpose. Also give justification for your answer.
3 State whether the following expenditure is capital or revenue and why1' Give reasons for your answers.
(i) Depreciation charged on plant.
(ii) Registration fees paid at the time of purchase of building.
(iii) Advertising expenditure, the benefits of which will last for five years
(iv) The expenditure incurred in erecting a platform on w'hich a machine will be fixed.
5 Write short notes on following fa) Accrual concept
(b) Principles of conservatism
PART - 111
Note : Attempt al! question: from this section as per given instruction.
12.5x4 = 50
i From the following balance sheet of Mohan Ltd..
prepare a schedule of changes in working capital and a Funds Flow Statement.
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1 (a) Distinguish between cash flow and funds flow statement.
(b) What do you mean by funds from operations9 How will you calculate funds from operations for the purpose of preparing funds How statements?
JJ-7103| llplllil III Ii llllllll Ii llll 6 [Contd...
Prepare accounting equations for the following transactions
(i) Started business with cash Rs. 4,00,000 and machine Rs. 10,000.
(ii) Purchased goods tor Rs, 1,00,000 by paying Rs. 50% in cash immediately.
(iii) Cash withdrawn from bank Rs. 70,000.
(i\ ) Salary payable Rs. 60.000 of which 60% is outstanding.
Iv) Sold goods costing Rs. 70,000 for Rs. 80,000.
2 Discuss the double entry system and also explain the merits of double entry system.
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3 Discuss the accounting treatment for the following | ||||||||||||||||||||
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3 Distinguish between following ;
(a) "Capital Expenditure" and "Revenue Expenditure".
(b) Trial Balance and Balance sheet.
JJ-7103) ll ll ll ll IIM ll'il ! Ill 7 ICotitd...
Following arc the income statement of a company for the year ending December 31. 2006 and 2007.
Use common size statement to analyse the financial position of company.
Year 2006 2007
Sales. ........................... 2000....... 2800
Miscellaneous income ...........80.........60
2080 2860
Expenses
Cost of sales.................. 1300........ 2040
Office expenses............. 80............100
Selling expenses..............120......... i80
Interest ............................ 100............120
1600 2440
Net Profit...................................480.................420
2080 2860
OR
Suppose you are working as a financial analyst in a Development Financial Institution (DFI) which extends both long term and working capital loans to corporate entities besides participating in their equity. As the suppliers of the funds, explain the ratios which you would use to analyze the financial health of the firms.
preferred capital
(e) Sold goods costing Rs 50,000 for Rs. 80.000
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