1. What do you understand by 'Financial Statements'? Discuss the utility and significance of financial statements for the various parties interested in a business concern.

2. Explain trend ratios as a form of Trend Analysis. Give also the examples of Trend Ratio Analysis.

3. What is cash flew statement? Explain the various techniques of preparing cash flow statement. How does it help the management in decision making?

4. Define 'Budget and budgeting'. Discuss its utility and limitations.

5. Explain the term variance. Write a short note on the classification of variances.

6. What is 'Activity Based Costing'? How does it differ from traditional costing approach?

7. Following are the Comparative Balance Sheets of a company

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Additional information

Dividend were paid amounting to Rs 350.

Depreciation of Rs 500 was provided for the year.

You are required to prepare a Cash Flow Statement.

8. An organisation manufactures two varieties of products A and B. The sales division of the company has three departments in different areas of the country. Prepare a sales budget for the year ended 31st December, 2013. Product A Department 3,00,000; Y Department 5,62,500; and Z Department 1,80,000. Product B Department 4,00,000; Y Department 6,00,000 and Z Department 20,000.

Sales price is Rs 6 and Rs 2.40 in all departments. It is estimated that by forced sales promotion the sale of B in Department X will increase by 1,75,000. It is also expected that by increasing production and arranging extensive advertisement, Department. Z will be able to increase the sale of B by 50,000. It is recognised that estimated sales by Department Y represent an unsatisfactory target. It is agreed to increase both estimates by 20%.

9. From the following figures, calculate the break-even point in rupees as well as in units.

Rs
Sales 30,000
Fixed expenses 7,500
Direct materials 10,000
Direct labour 6,000
Direct expenses 4,000
Output (in units) 1,000