FACULTY OF MANAGEMENT
M.B.A. I Semester (Backlog) Examination, June 2017
Subject Financial Accounting and Analysis
Course No. 1.3
Time 3 hours Max. Marks 80
Note Answer all the questions.
Part A (10 X 2 20 Marks)
(Short Answer Type)
1 Write short notes on each of the following at one place
Accounting concept
Suspense Account
Business income
Goodwill
Liquidity ratios
Cost of goods sold
Funds from business operation
Working capital
GAAP
Balanced Score Card
Part B X12 60 Marks)
(Essay Answer Type)
2 Explain accounting as a business information system.
OR
Anil had the following transactions. Use accounting equation to show their
effect on his assets, liabilities and capital.
Rs.
1. Started business with cash
2. Purchased goods on credit
3. Purchased goods for cash
4. Purchased furniture
5. Withdraw for personal use
6. Paid Rent
7. Received interest
8. Sold goods costing Rs.50 on credit for
9. Paid to creditors
10. Paid for salaries
11. Further capital invested
12. Borrow from P
5,000
400
100
50
70
20
10
70
40
20
1,000
1,000
..2
OU 2260 OU 2260
Code No. 9083 BL
2
3 Explain the presentation of Financial Statements.
OR
On 1st January, 1988, a merchant purchased some furniture costing
Rs.55,000. It is estimated that its working life is 10 years at the end of which
it will fetch Rs.5,000. Additions are made on 1st January, 1989 and 1st July,
1991 to the value of Rs.9,500 and Rs.8,400 (residual values Rs.500 and
value of Rs.400 respectively). Show the furniture account for the first four
years, if is straight line method of depreciation.
4 Explain the classification of ratios.
OR
X co. has made plans for the next year. It is estimated that the company will
employ total assets of Rs.8,00,000; 50% of the assets being financed by
barrowed capital at an interest cost of per year. The direct costs for the
year are estimated at Rs.4,80,000 and all other operating expenses are
estimated at Rs.80,000. The goods will be sold to customers at 150% of the
direct costs. Tax is 50%.
Calculate 1 Net profit margin
2 RoA
3 Assets turnover
4 Return on owner's equity
5 Explain the preparation of statement of changes in working capital.
OR
Company XYZ has its brief cash account statement available for the
investors. Looking at the cash account. Prepare cash flow statement.
Cash account of company XYZ for the year ended 31.03.2010
Rs. Rs.
Balance as on 01-4-2009
Issue of Debentures
Collection from customers
Sale of Plant and Machinery
200
8,000
12,000
1,000
Payment for diesel
Purchase of boiler
Rent paid
Salaries paid
Taxation
Dividend
Redemption of bonds
Balance as on 31-3-2009
10,000
5,000
1,900
2,000
300
700
1,000
300
21,200 21,200
6 Explain the growing importance of global accounting environment.
OR
Discuss the valuation of human resources in an organization.