Gauhati University Question Papers
Regulatory Framework of Business - I' 2014
Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)
1.
Answer the following questions as directed: 1x5=5
a)
Copyright is an example of wasting asset. (State
‘true’ or ‘false’)
b)
‘Financial statements portray the financial
effects of transactions and other events by grouping them into broad classes
according to their economic characteristics’. (State whether the statement is
‘true’ or ‘false’)
c)
Horizontal analysis is also known as
1)
Dynamic analysis.
2)
Static analysis.
3)
External analysis.
4)
Internal analysis.
(Select the
correct answer)
d)
Cash flows are _______ and _______ of cash and
cash equivalents. (Fill in the blanks)
e)
Which of the following is an example of cash
flow from operating activity?
1)
Buy-back of equity shares.
2)
Redemption of debentures.
3)
Payment of interest by a financial enterprise.
4)
Raising of long-term loans.
(Select the
correct answer)
2.
Write the meaning of the following: 2x5=10
a)
Cash flow.
b)
Financial statement.
c)
Vertical analysis.
d)
Absolute liquid ratio.
e)
Sources of funds.
3.
Answer the following questions: 5x5=25
(a) Explain
in brief the limitations of financial statements.
(b) Explain
common-size statements.
(c) Anand
Ltd. supplies you the following information for the year ended 31st
March, 2018:
|
|
Rs.
|
|
Credit sales
Cash sales
Returns inward
Opening inventory
Closing inventory
Rate of GP
|
3,75,000
2,25,000
20,000
25,000
21,400
20%
|
Find out (1) Inventory turnover ratio and
(2) Inventory conversion period.
(d)
From the following information, calculate cash flow from operating activities:
|
|
Rs.
|
|
Cash sales
Credit sales
Collection from
customers
Cash purchases
Credit purchases
Cash paid to
suppliers
Commission received
Commission accrued
Office expenses paid
Office expenses
outstanding
Out of total salary
of Rs. 6,000, salary paid in cash Rs. 2,000 and balance remains outstanding.
Income tax paid
Donation paid
|
2,00,000
3,50,000
90,000
50,000
1,20,000
60,000
2,000
1,000
8,000
500
400
100
|
Or
Distinguish between Funds flow Statement and Cash flow
Statement.
(e)
What are the objectives of corporate financial reporting?
Or
Write a brief note on the contents of Annual Report of a
joint stock company.
4.
Why is Financial Statement significant? Describe the various qualitative
characteristics of Financial Statement. 4+6=10
Or
What is meant by accounting information? Explain the
qualitative features of accounting information. 4+6=10
5.
“Corporate financial reporting is intended to supply information useful to
various groups in making decisions.” Explain. 10
Or
What is corporate financial reporting? Explain in brief the
contents of Board of Directors’ Report. 4+6=10
6.
With the help of the following information complete the Balance Sheet of Udayan
Ltd.: 10
|
Annual sales
Sales to Net Worth
Current Debt to Net
Worth
Total Debt to Net
Worth
Current Ratio
Sales to Inventory
Average collection
period
Fixed Assets to Net
Worth
|
Rs. 40,00,000
4 times
50%
80%
2.2 times
8 times
40 days
70%
|
State the different types of financial analysis and discuss
the limitations of analysis and interpretation of financial statements. 5+5=10
7.
Prepare a Fund Flow Statement from the following data:
|
Particulars
|
2016-17
(Rs.)
|
2017-18
(Rs.)
|
|
(i) Equity and
Liabilities:
Shareholders’ Fund:
Equity share capital
Reserve and Surplus:
Statement of profit and loss (surplus)
Non-current
Liabilities:
Long-term Debts
Current Liabilities:
Accounts payable
Accumulated Depreciation
|
5,00,000
2,80,000
1,40,000
2,00,000
2,10,000
|
5,30,000
3,70,000
1,30,000
2,10,000
2,50,000
|
|
|
13,30,000
|
14,90,000
|
|
(ii) Assets:
Non-current Assets:
Fixed Assets
Current Assets:
Inventories
Accounts Receivable
Cash and cash equivalent
Other Assets
|
5,00,000
3,10,000
2,40,000
80,000
2,00,000
|
5,80,000
3,20,000
2,70,000
70,000
2,50,000
|
|
|
13,30,000
|
14,90,000
|
Additional Information:
a)
Fixed assets (original cost Rs. 40,000,
accumulated depreciation Rs. 15,000) were sold for Rs. 10,000.
b)
Depreciation for the year 2017-18 amounted to
Rs. 55,000 duly charged to Statement of Profit and Loss. 10
Or
What is the purpose of preparing a Cash flow Statement? How
is it prepared? Explain. 3+7=10
***
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