Financial Accounting Question Paper With Answers

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Code: 12CMB03 MBA-I Semester Regular & Supplementary Examinations, February/March, 2014 ACCOUNTING FOR MANAGERS-KEY (For 2012

& 2013 Admitted Batch Only)


Q.No Description Definition of Accounting Users of accounting information: 1.Investors 2. Management 3. Creditors 4. Financial institutions 5. Employees 6. Government 7. Stock Exchanges Weight 3 9 Total Marks

12

Meaning of Capital Budgeting Types of Capital Budgeting Techniques: Traditional method: 1. Payback period 2.Average Rate of Return Discounted Cash flow Method: 1. Net Present Value 2. Internal Rate of Return 3. Profitability Index

2 4 12 6

Meaning of Leverage Types of Leverage: 1. Operating Leverage 4 2. Financial Leverage 3. Combined Leverage

2 4 4 2 12

Introduction to Dividend Policy Factors influencing the dividend policy: 1. Legal Restrictions 2. Magnitude & trend of earnings 3. Desire & Types of shareholders

2 10 12

4. Nature of industry 5. Age of company 6. Future financial requirements 7. Government economic policy 8. Taxation policy 9. Inflation 10. Liquid resources Introduction to working capital Operating cycle period: a) Raw Material & storage period(R) b) Work in Progress storage period(W) c) Finished Goods storage period(F) d) Average credit period allowed to debtors for collection of due(D) e) Average credit period received from creditors for making payment(C) OPERATING CYCLE PERIOD=R+W+F+D-C

4 8

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Meaning of Inventory Management Techniques of Inventory Management: 1. Determination of stock level 2. Determination of safety stocks 3. Selecting a proper system of ordering for inventory 4. Determination of EOQ 5. ABC Analysis 6. VED Analysis 7. Inventory Turnover Ratio 8. Classification & codification of inventories 9. Preparation of inventory reports 10. Lead time 11. Perpetual inventory system 12. JIT Control system Meaning of merger & Acquisition Types of Mergers: 1. Horizontal merger 2. Vertical Merger 3. Conglomerate Merger 4. Reverse Merger

2 10

12

4 8 12

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