INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management
PAPER No. 3
BUSINESS ECONOMICS FINANCIAL ACCOUNTING.
Date 11.12.2017 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. Expand the following abbreviations; 8 marks
RPI
b. LRAC
c. NNP
d. AIS
e. PQLI
f. NIPM
g. GAPP
h. AICPA
Q.2. State whether the following are true or false: 8 marks
a. Human Development Index measures education.
b. Working Capital is a long-term requirement of funds.
c. Currency risk is fluctuation in foreign exchange rate.
d. The role of MNCs in India and in other countries is different.
e Accounting is both a science and an art.
f. Non-monetary benefits are considered in accounting.
g. Banking is included in the tertiary sector of the economy.
h. The Department of ocean development was established in 2017.
Q.3 Fill in the blanks: 8 marks
a. Basel agreement requires capital ratio.
b. ESPP is Employee Stock Option
c. Dividend payable is a
d. Goodwill is an asset.
e. Overhead cost is cost.
f. Financial leverage ratio is called ratio.
g. A graph of all combinations of inputs that result in the production of a given level of
output is
h. Macro economics concentrates on the behavior of the as a whole.
Dec 2017
Q4. Match the following of A with B 8 marks
A B
1. Delegation of power a. Foreign trade policy
2. SAIL b. Non-current liability
3. Secondary sector c. Current liability
4. Tertiary sector d. Current asset
5. Protectionism e. Insurance
6. Debentures f. Manufacturing
7.Bank overdraft g. CPSU
8. Cash at bank h. Manager to subordinates
PART B
(Answer any three) 3x16 48 marks
Q 5. Write short notes on any four 16 marks
a. Quality culture
b. Law of supply
c. Labour productivity
d. Macroeconomics
e. Social infrastructure in India
f. Financial market
Q 6. Explain in detail the concept and types of demand 16 Marks.
Q 7 . 16 marks
a. Discuss the limitations of financial statements.
b. Discuss the significance of accounting principles'
Q 8. 16 marks
a. Explain the role of Government in an economy.
Discuss the effects of globalization.
Q 9 Discuss the objectives and functions of Accounting. 16 Marks
PART compulsory) 20 Marks
Q 10. Prepare common size balance sheet of Suresh Chemicals from the following information given
for the years 2011 and 2012.
Balance Sheet of Suresh Chemicals
Liabilities
2011
2012
Assets
2011
2012(Rs)
Equity Share Capital
2,00,000
3,00,000
Fixed Assets
2,25,000
4,00,000
Reserves and surplus
1,00,000
2,00,000
Stock
1,29,000
2,00,000
Bank Overdraft
60,000
2,00,000
Other current assets
46,000
2,00,000
Other current liabilities
40,000
1,00,000
Total
4,00,000
8,00,000
4,00,000
8,00,000s