INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management
PAPER No. 3
BUSINESS ECONOMICS FINANCIAL ACCOUNTING.
Date 11.06.2018 Max. Marks :100
Time 2.00 p.m to 5.00 pm Duration 3 Hrs.
Instructions
1. From Part A answer all questions (compulsory). Total: 32 Marks
2. From Part B Answer any 3 questions out of 5 questions. Each question carries 16 marks Total: 48 Marks
3.Part C is a case study (compulsory). Read the case study carefully and answer the questions Total: 20 Marks
PART A (compulsory). 32 x1= 32 marks)
Q.1: State True or False. 8 marks
a. Macro Economics concentrates on behaviour of the economy as a whole.
b. A firm obtains its finished goods by production which is the conversion of OUTPUT into INPUT.
c. The size of an economy can be measured based on its GDP.
d. The young generation is a market force to be reckoned with.
e. Accounting is done for transactions that are non measurable in monetary terms.
f. Balance sheet is prepared "As on Date" to reflect the financial strength of the company.
g. The GAAP means Generally Accepted Accounting Principles.
h. Computer software is not an Intangible Asset.
Q.2: Fill in the blanks. 8 marks
Sole Proprietorship firm has the liability.
is the regulatory body in India.
Social responsibility is largely associated with
Statement of changes in financial positions is expressed by statement.
Existence of business is considered separate from its owner under concept.
Debit the Receiver and Credit the Giver is rule of Account.
Bills Receivable is a Current
Decrease in Working Capital is increase in of the funds.
June 2018
Q3. Expand the abbreviationns 8 marks
a. GDP
b. STCI
c. SIDBI
d. NABARD
e. NHB
f. GIC
g. GNP
h. WTO
Q4. Match the following. 8 marks
A
a. Micro Economics
b. Financial Institutions
c. Human Development Index
d. Supply and Demand
e. Accounting
f. Financial Statement
g. Debit what comes in
h. Purchase of an Asset
B
1. Measure of Life expectancy
2. Financial Transaction
3. Real Account
4. Balance Sheet
5. Individual Households
6. Usage of funds
7. Financial Services
8. Economic Analysis
PART B
(Answer any three) x 16 48 Marks)
Q.5: Write short notes on any four. (4x4 16 marks)
a. Micro Vs Macro Economics
b. Goods Services Tax
c. Mixed Economy
d. Factors of Production
e. Objectives of Financial Statements
f. Sources of Funds
Q.6: What are the salient features of Indian Economy?
Q.7: a. Discuss the criteria of Market classification
b. Explain the role of Government in an economy.
Q.8: Describe the three branches of Accounting.
Q.9: a. Discuss the advantages and disadvantages of each form of business organisation.
b. Explain the Sub-types of financial markets.
PART C
Q.10: CASE STUDY (compulsory) (20 Marks)
Prepare a statement of changes in working capital from the following balance sheet of X Ltd.
Balance Sheet as on 31.12.2015 and 31.12.2016
Liabilities
2009
2010
Assets
2009
2010
Equity share capital
Debentures
Tax Payable
Interest Payable
Sundry Creditors
Dividend Payable
3,00,000
1,40,000
52,000
28,000
41,000
35,000
3,00,000
1,40,000
48,000
33,000
48,000
32,000
Fixed Assets
Long term Investments
Bills Receivable
Stock
Debtors
Cash
3,30,000
1,00,000
65,000
49,000
32,000
20,000
3,40,000
95,000
76,000
49,000
23,000
18,000
5,96,000
6,01,000
5,96,000
6,01,000