Accountancy Financial Management - V | MU Solved Question Papers | B.Com 5th Sem

Please check whether you have got the right question paper.

Q.1 A) Select the most appropriate answer [Any ten]      10

(1) The basic function of management accounting is __________.

a) To serve Government

b) To serve the management in performing if functions effectively.

c) To serve the public

(2) In the vertical Balance Sheet, Bank Overdraft is considered as_____________.

a) Current Asset

b) Quick Current Liability

c) Fixed Asset

(3) ___________expresses all items of a financial statement as a percentage of some measure of the company.

a) Common size statement

b) Comparative statement

c) Trend statement

(4) Satisfactory level of Current Ratio is _________.

a) 1:1

b) 3:1

c) 2:1

(5) __________shows how many times per period the company pays its average payable amount.

a) Creditors Turnover Ratio

b) Debtors Turnover Ratio

c) Stock Turnover Ratio

(6) If cash flows are not uniform, the calculation of payback period takes a __________.

a) Common profit

b) Favourable position

c) Cumulative form

(7) The current worth of a sum of money to be received at a future date is called ________.

a) Future value

b) Present value

c) Salvage value

(8) Total cash outflow is < 85,000 and present value of total cash inflow is < 75.000.The Net Present value is__.

a) < 10,000

b) < (-) 10,000

c) < 2,000

(9) Using Profitability Index, the preference rule for selection of the machine is _________.

a) The lower Profitability Index

b) The higher Profitability Index

c) Both a and b

(10) Operating cycle refers to the time required to convert the _________to be converted into products and the time it takes for those products to be sold and turned back into cash.

a) Cash

b) Assets

c) Liabilities

11) Inventory is < 20,000 and average stock held is < 4,000. The stock holding period for 360 days in a year is __.

a) 72 days

b) 180 days

c) 5 days

(12) ______________provides information about financial position of the company.

a) Revenue Statement

b) Cash flow Statement

c) Balance Sheet

B) State whether the following statements are True or False. (Any ten)       10

1) Financial statements of a company prepared at the end of the financial year provide information only to the owners of the business.               False, Both internal and external users

2) Combined ratios show the relationship between two figures which are taken from the Balance Sheet only. False

3) Depreciation is cash business expenditure.                         False, Non-cash business expenditure

4) Working capital means Net Current Assets.        True

5) Capital Budgeting decisions are long term investment decisions.                              True

6) Trend Analysis shows the trend in the performance and position of an organisation.                      True

7) When the comparison of financial data is over a number of accounting years relating to one company only it is called as intercompany analysis.                True

8) In preparing the estimate of Working Capital, Debtors cannot be valued at cost.  True, valued at net realisable value

9) Permanent Working Capital remains constant.                  True, but the value of permanent working capital increases or decreases with the change in the value of current assets and current liabilities.

10) Net Profit Ratio is a measure of profitability.                    True

11) Payback Method is a modern technique of Capital Budgeting. False, Traditional method

12) Public Deposits accepted by a company are a part of Shareholders Fund.           False, Shown as non-current liabilities

FINANCIAL ACCOUNTING AND AUDITING V’ 2018 (April)

INTRODUCTION TO MANAGEMENT ACCOUNTING (CBCGS)

Q.P. Code: 22502

(3 Hours)

[Total Marks: 100]

Please check whether you have got the right question paper.

Q.1 A) Select the most appropriate answer: (Any ten):                    10

1. Goodwill is an __________asset.

a) Fictitious

b) Intangible

c) Tangible

d) Current

2. Operating Ratio is an indicator of ___________.

a) Operating efficiency

b) Production efficiency

c) Sales efficiency

d) None of the above

3. ______________ is an item of current liability.

a) Unsecured Loans

b) Cash Balance

c) Bank Overdraft

d) Bank Balance

4. The capital required to finance day to day activities of the business is known as_________.

a) Fixed Capital

b) Working Capital

c) Proprietors Capital

d) None of the above

5. Assets which can be converted into cash within one year are____________.

a) Fixed Assets

b) Fictitious Assets

c) Current Assets

d) None of the above

6. In Common Size Income Statement Analysis __________is assumed to be hundred.

a) Gross Sales

b) Net profit

c) Operating profit

d) None of the above

7. Operating Cost Ratio is a ___________.

a) Balance Sheet Ratio

b) Revenue Statement Ratio

c) Composite Ratio

d) None of the above

8. Current Assets < 1, 80,000, Current Liabilities < 90,000. The amount of Working Capital is ______________.

a) < 90,000

b) < 1, 80,000

c) < 2, 70,000

d) None of the above

9. Comparison of performance of a company over a period of time on the basis of base year is known as ____.

a) Cost Benefit Analysis

b) Comparative Analysis

c) Trend Analysis

d) Common Size Analysis

10. To calculate the cash cost of working capital debtors are __________.

a) Not considered

b) Considered at cost

c) Considered at realisable value

d) None of the above.

11. Capital Budgeting decisions involve decisions relating to ______________.

a) Financing day to day activities

b) Acquisition of fixed assets

c) Both a & b

d) None of the above

12. ________________are the techniques of Capital Budgeting.

a) Payback Period

b) Accounting Rate of Return

c) Net Present Value

d) All of the above

B. State whether the following statements are True or False (Any Ten):            10

1. Net Working Capital means Total Current Assets.                             False, CA – CL

2. The amount of working capital over and above the permanent working capital is temporary working capital.  True

3. Operating cycle = Raw materials + Work in Progress + Finished Goods + Debtors – Creditors.      True

4. Cash flow and Accounting Profit are different.                   True

5. There is a time element involved in Capital Budgeting.   True

6. Capital Budgeting decisions are long term decisions.       True

7. Liquid Ratio is used to determine the company’s long term solvency.     False, Short term liquidity

8. A higher Debt Equity Ratio indicates a safer financial position of the company.   False

9. Outsiders contribution is not included in Proprietors Fund.                          True

10. Revenue Statement indicates operating performance of a company.                   True

11. In Trend Analysis, the trend of each item is calculated on the basis of sales of the Base Year.    False

12. Owners Fund and Borrowed Fund are two constituents of Total funds of a company.   True 

FINANCIAL ACCOUNTING AND AUDITING V’ 2018 (Nov)

INTRODUCTION TO MANAGEMENT ACCOUNTING (CBCGS)

Q.P. Code: 22500

(3 Hours)

[Total Marks: 100]

Please check whether you have got the right question paper.

Q.1 B) Match the columns (Any ten).      10

 B. State whether the following statements are True or False: (Any ten):          10

1) Depreciation is a non-cash expenditure.                              True

2) Net Profit Ratio is a measure of profitability.      True

3) Unclaimed dividend is a current liability.               True

4) Focus of Management Accounting is only an external reporting.                               False

5) While calculating working capital requirement debtors may be valued at cost price or at selling price.  True

6) Higher Gross Profit Ratio shows a higher trading efficiency of an organisation.   True

7) Net Present Value method considers time value of money.                        True

8) In Common Size Income statements capital employed is considered equal to 100%.        False    

9) Profit & Loss Account shows financial position of an organisation.                            False

10) Capital Gearing Ratio is called Capital Structure Ratio.

11) Own fund is external fund.                      False

12) Average stock is the total of opening and closing stock. False, opening stock plus closing stock divided by 2 

FINANCIAL ACCOUNTING AND AUDITING V’ 2019 (April)

INTRODUCTION TO MANAGEMENT ACCOUNTING (CBCGS)

Q.P. Code:

(3 Hours)

[Total Marks: 100]

Please check whether you have got the right question paper.

Q.1. A. Select the most appropriate answer from the following: (Any 10) (10)

1) The functions of management accounting include _______.

a. Collection of data

b. Analysis of data

c. Presentation of data

d. All of the above

2) Balance Sheet is a statement of ______.

a. Assets & Liabilities

b. Working capital

c. Operating Results

d. None of the above

3) Comparative Statement shows_____.

a. One year’s performance

b. Financial performance

c. Comparative performance

d. Profitability performance

4) Current Ratio shows _______.

a. Short term financial position

b. Collection efficiency

c. Financial stability

d. Higher profitability

5) Working Capital is the capital required to finance ______.

a. Day to day operations

b. Purchase of fixed assets

c. Settlement of long term liabilities

d. None of the above

6) Long term decisions are called as ____.

a. Profit volume analysis

b. Working capital decisions

c. Future decisions

d. Capital budgeting decisions

7) Management Accounting relates to ______.

a. Recording of accounting data

b. Recording of costing data

c. Presentation of accounting data

d. None of the above

8) General Reserve is created out of _____.

a. Profit

b. Income

c. Expenditure

d. Dividend received

9) Earliest year is to be considered as base year, the values of which are taken as 100 in ___.

a. Balance Sheet

b. Income statement

c. Trend Analysis

d. Comparative Statement

10) Net profit ratio indicates ________.

a. Status of assets and liabilities

b. Profitability

c. Trading Efficiency

d. Liquidity

11) Margin of safety is provided to _____.

a. Cover possible variations in estimation

b. Provide safety in management of working capital

c. Ensure safety in estimation of working capital

d. All of the above

12) Payback period is the time required to___.

a. Recover the original investment

b. Depreciate asset

c. Pay the creditors

d. Recovery from debtors

B. State whether the following statements are true or false: (Any 10) (10)

1) Depreciation is a non cash cost.                True

2) Provision for contingency is added to net current assets to get working capital requirement.      True

3) Analysis is a must for interpretation.                      True

4) Current ratio is also known as working capital ratio.         True

5) Patents & copyrights are intangible assets.         True

6) Publication of Management Accounting Report is not compulsory.          True

7) Capital Budgeting decisions are very easy to take.           False, difficult decisions

8) Inadequate working capital increases efficiency of the management.    False

9) Stock Turnover ratio indicates the speed of collection of debt.                  False, Debtors turnover ratio

10) In comparative income statement capital employed is considered equal to 100.              False

11) Calls in arrears are calls in advance.                       True

12) Focus of Management Accounting is on external reporting.     False, Internal reporting