All India Management Association (AIMA) 2007 M.B.A Marketing Management Accounting for ision Making – I - Question Paper
Friday, 01 February 2013 11:00Web
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(c) 1.69 times
(d) 7.63 times
(e) 6.73 times.
( 2 marks)
68. Govind Ltd., furnished the subsequent information:
Particulars
Return on total assets ratio 25%
Return on net worth ratio 30%
Net worth Rs.15,00,000
The total assets of Govind Ltd., was
(a) Rs. 4,50,000
(b) Rs.18,00,000
(c) Rs. 1,57,500
(d) Rs. 5,25,000
(e) Rs.15,00,000.
( 2 marks)
69. The dividend pay-out ratio of CAMEL Ltd., was 30%. If the net profit available for distribution was Rs.1,20,000, then the dividends paid by the company were
(a) Rs.64,000
(b) Rs.36,000
(c) Rs.84,000
(d) Rs.10,000
(e) Rs.16,000.
( 2 marks)
70. Which of the subsequent does not help in expense manipulation?
(a) Employee pension and other retirement benefit schemes
(b) Big-bath accounting
(c) Accounting for inventories
(d) Understating liabilities
(e) Overstatement of value of accounts receivables.
( 1 mark)
END OF ques. PAPER
Suggested Answers
Accounting for Decision Making – I (MB2D1): October 2008
part A : Basic Concepts
Answer Reason
1. B Earning revenue income will increase the owners’ equity.
The subsequent transactions will not outcome in an increase in the owners’ equity:
Borrowing additional loans.
Sale of fixed assets at book value.
Sale of investments at book value.
Purchase of fixed assets. < TOP >
2. E In order to determine the profits or losses accrued in an accounting period, the expenses are related to the goods or services sold during the period. This is in recognition of matching concept. < TOP >
3. A The duality concept states that:
Owner’s equity + Outside liabilities = Assets
The sum of the Sources of Funds, must be equal to the sum of Uses of funds. < TOP >
4. A Assets are to be recorded in the books of accounts at the price paid to acquire them. This statement is in recognition of cost concept. < TOP >
5. C According to matching concept, if fixed assets are used to generate income, the cost of these assets (in the form of depreciation) is allocated over the effective life of the asset. < TOP >
6. C Contingent liabilities appearing as notes reiterate the principle of disclosure. The full disclosure concept implies that all material info that could affect the decision of the user must be disclosed. < TOP >
7. C According to Dual aspect concept :
Total assets = Owner’s equity + Outside liabilities
Owner’s equity = Capital + Reserves & Surplus
| Earning: Approval pending. |
