Gauhati University 2007 B.Com Financial Statement Analysis - exam paper

2007
COMMERCE

SECOND PAPER
(Financial Statement Analysis)
Full Marks: 80
Time: three hours

The figures in the margin indicate full marks for the ques.
1. (a) Write the meaning of 'Revenues from Central Operations'. 2
(b) What is meant by 'Reliability' of accounting information? 2
(c) What is 'Flow of Fund'? 2
(d) Fill in the blank: 2
Long-term Fund minus Fixed Assets = _____________________
(e) discuss the meaning of EPS. 2
2. ans any five: 6×5=30
(a) Briefly discuss the techniques of inventory control.
(b) define the 'operating cycle' concept of working capital.
(c) explain the main features of Accounting Standard one 'Disclosure of Accounting
Policies'.
(d) define the utility of using 'comparative statement'.
(e) discuss the significance of Debtors Turnover and Inventory Turnover Ratios.
(f) Are International Accounting Standards superior to Indian Accounting Standards?
discuss with reasons.
(g) elaborate the limitations of Financial Statements?
(h) elaborate the uses of Accounting Ratios in business decision making?
3. Write short notes on any four: 5×4=20
(a) Financial Structure Analysis
(b) Trading on Equity
(c) evaluation of Fixed Assets
(d) Uses of Cash Flow Statement
(e) Reasons for Profit Variation
(f) Methods of Demand Forecasting
4. ans anyone:
a) A company has owner's equity of Rs.1,00,000. It has supplied the subsequent
accounting ratios:
Current Debt to Total Debt = 0.40
. Total Debt to Owner's Equity =0.60
Fixed Assets to Owner's Equity = 0.60
Total Assets Turnover = two times
Inventory Turnover = eight times
With these information, you are needed to prepare a summarised Balance Sheet
of the company.
b) Prepare a Cash Flow Statement with the subsequent info :
Balances as on 31.3.2006
Rs
Cash and Bank 9,000
Fixed Assets 45,000
Inventory 60,000
Accounts Receivables 36,000
Misc. Current Assets 40,000
Capital (10000 shares) 1,00,000
Long-term Loan 40,000
Short-term Loan 20,000
Reserve and Surplus 30,000
.
Balances as on 31.3.2007
Rs
Cash and Bank 28,000
Fixed Assets 40,000
Inventory 70,000
Accounts Receivables 44,000
Misc. Current Assets 6,000
Capital (10000 shares) 1,00,000
Long-term Loan 70,000
Short-term Liabilities 30,000
Reserve and Surplus 28,000
During the year 2006-07, Interim Dividend of Rs 50,000 was distributed. There was no
sale or purchase of fixed assets.

Earning:   Approval pending.