INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management
PAPER No. 3
BUSINESS ECONOMICS FINANCIAL ACCOUNTING.
Date 13.12.2016 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)
Q1. State whether the following are true or false: 8 marks
a. MNCs have same role in India as in other countries
b. Capital market includes stock market and bond market.
c. In the long-term all factors are not variable.
d. Working capital =current assets current liabilities.
e. Oligopoly is a market dominated by few sellers and many buyers
f. Fishing is an example of tertiary sector of the economy.
g. Technical unemployment is staff reduction due to change in technology
h Disguised unemployment is less work and more people.
Q2. Expand the abbreviations 8 marks
a. LRAC
b. RPI
c. AICPA
d. AIS
e. NIPM
f. NPA
g. STCI
h. NABARD
Dec 2016
Q3. Fill in the blanks with appropriate words: 8 marks
a. Economic indicators fall into three categories ,leading, lagging and
b. For its continuous development, India formulates and plans.
c. GDP Accounting is one of the ways of measuring the the economy.
d. GAPP means Generally Accepted Accounting
e Computer software is an
f . Economics is the science of
g. The four basic factors of production are land, labour ,capital
h concentrates on behavior of the economy on the whole.
Q4. Match the following 8 marks
A B
1 NNP a Non-current asset
2 SAIL b Current asset
3 Monopoly c Financial Institution
4 Equity share capital d Listed companies
5 Trade marks e National Income
6 Cash at Bank f CPSU
7 UTI g Sole supplier
8 SEBI h Non-current liability
PART B
(Answer any three) 3x16 48 marks
Q5. Write short notes on any four 4 x 16 marks
a. Quality Culture
b. Book Keeping
c. Perfect Competition
d. Resonance brands
e. Concept of demand
f. Challenges before Indian Economy
Q 6. Explain the Objectives and functions of Accounting 16 marks
Q 7 a. Discuss the Accounting Conventions. 2 X 8 16 marks
b. Discuss the significance of Accounting Principles
Q 8. a. Explain the factors of production 2 X 8 16 marks
b. Discuss social responsibility and ethics.
Q 9. a. Discuss the role of public sector in economic development. 2 X 8 16 marks
b. Discuss the role of SMEs in India.
PART C (compulsory)
Q10. Prepare common size balance sheet of Suresh Chemicals from the following information given for the years 2011 and 2012. 20 Marks
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