BCom SY BCom Sem 3 BCom Sem 3 (2018 2019) Mar 2019 ATKT FINANCIAL ACCOUNTING AUDITING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A. Select the most appropriate answer from the following: (Any 10) 10 marks
   • 1) The functions of management accounting include
   • a. Collection of data
   • b. Analysis of data
   • c. Presentation of data
   • d. All of the above
   • 2) Balance Sheet is a statement of
   • a. Assets & Liabilities
   • b. Working capital
   • c. Operating Results
   • d. None of the above
   • b. Financial performance
   • c. Comparative performance
   • d. Profitability performance
   • a. Short term financial position
   • b. Collection efficiency
   • c. Financial stability
   • d. Higher profitability
   • 5) Working Capital is the capital required to finance
   • a. Day to day operations
   • b. Purchase of fixed assets
   • c. Settlement of long term liabilities
   • d. None of the above
   • 6) Long term decisions are called as
   • c. Future decisions
   • 7) Management Accounting relates to
   • a. Recording of accounting data
   • b. Recording of costing data
   • c. Presentation of accounting data
   • d. None of the above
   • 8) General Reserve is created out of
   • b. Income
   • c. Expenditure
   • d. Dividend received Paper Subject Code: 79306 Financial Accounting and Auditing - Introduction to Management Accounting
   • 9) Earliest year is to be considered as base year, the values of which are taken as 100 in
   • a. Balance Sheet
   • b. Income statement
   • c. Trend Analysis
   • d. Comparative Statement
   • a. Status of assets and liabilities
   • b. Profitability
   • c. Trading Efficiency
   • d. Liquidity
   • 11) Margin of safety is provided to
   • a. Cover possible variations in estimation
   • b. Provide safety in management of working capital
   • c. Ensure safety in estimation of working capital
   • d. All of the above
   • 12) Payback period is the time required to
   • a. Recover the original investment
   • b. Depreciate asset
   • c. Pay the creditors
   • d. Recovery from debtors
2. Q1 B. State whether the following statements are true or false: (Any 10) 10 marks
   • 1) Depreciation is anon cash cost
   • 2) Provision for contingency is added to net current assets to get working capital
   • 3) Analysis is a must for interpretation
   • 4) Current ratio is also known as working capital ratio
   • 5) Patents & copyrights are intangible assets
   • 6) Publication of Management Accounting Report is not compulsory
   • 7) Capital Budgeting decisions are very easy to take
   • 8) Inadequate working capital increases efficiency of the management Stock Turnover ratio indicates the speed of collection of debt
   • 10) In comparative income statement capital employed is considered equal to 100
   • 11) Calls in arrears is calls in advance
   • 12) Focus of Management Accounting is on external reporting
3. Q2 A.Complete the following comparative Income statement of A Limited. Difference in Percentage Particulars 2016-17 2017-18 amount (in Rs.) | (%) Paper Subject Code: 79306 Financial Accounting and Auditing - Introduction to Management Accounting 8 marks
4. Q2 B. Complete the following Common Size Balance Sheet of B Limited. 7 marks
5. Q2 Calculate the Trend Analysis for the following balance sheet of C Limited. Paper Subject Code: 79306 Financial Accounting and Auditing - Introduction to Management Accounting 15 marks
6. Q3 Following is the information extracted from the books of M Ltd Compute the following Ratios: 15 marks
   • 2. Current Ratio
   • 4. Liquid Ratio
   • 7. Return on Equity Preparing Vertical Balance Sheet is not expected
7. Q3 Following is the Summarized Balance Sheet of M/s N Limited as on 31st March, 2018. (Rs. 100/- each) 3,50,000 | Furniture & Fittings 5,25 Paper Subject Code: 79306 Financial Accounting and Auditing - Introduction to Management Accounting The following further information is also given for the year Out of Total Sales, 20% are Cash Sales Calculate the following Ratios: 15 marks
   • 1. Proprietary Ratio
   • 3. Quick Ratio
   • 4. Operating Ratio Preparing Vertical Balance Sheet is not expected
8. Q4 The Cost of Machinery is Rs. 200,000 Round off each of the Present values to the nearest Rupee Using Discounting Factor @ 12% (up to 4 decimal places) calculate: 15 marks
   • 3. Profitability Index
   • 4. Payback Period
9. Q4 The Cost of Machinery A is Rs. 10,00,000 & Cost of Machinery B is Rs. 20,00,000 Depreciation has been applied on a Straight Line Method with no salvage value. (15) Year Machine A in Rs. of Machine B in Rs
   • 1. Using Average Rate of Return method analyse which machine should be accepted
   • 2. Using Payback Period Method which machine should be accepted Paper Subject Code: 79306 Financial Accounting and Auditing - Introduction to Management Accounting
10. Q5 The management of Z Industries has called for a statement showing the working capital to finance a level of activity of 1,80,000 units of output for the year. The cost structure for the company’s product for the above mentioned activity level is detailed below: (15) Overheads (Including Depreciation of Rs. 5 per unit) Rs. 15
    • a) Minimum desired cash balance is Rs. 30,000
    • b) Raw material are held in stock, on an average, for two months
    • c) Work-in-progress (assume 50% completion stage) will approximate to half-a-month’s
    • d) Finished goods remain in warehouse, on an average, for a month
    • e) Suppliers of materials extend a month’s credit and debtors are provided two months’ credit; cash sales are 25% of total sales
    • f) There is a time-tag-in payment of wages of a month and half-a-month in the case of overheads From the above facts, you are required to prepare a statement showing working capital needs
11. Q5 The management of Y Industries has called for a statement of estimated working capital to finance a level of activity of 3,60,000 units of output for the year. The cost structure for the company’s product for the above mentioned activity level is detailed below : (15)
    • a) Analysis of Cost per unit is as follows Raw material is 40% of sales Labour and overheads are 10% and 30% of sales respectively Selling Price is Rs 100 per unit
    • b) Minimum desired cash balance is Rs. 60,000
    • c) Raw material are held in stock, on an average, for two months
    • d) Work-in-progress (assume 50% completion stage) will approximate to half-a-month’s
    • e) Finished goods remain in warehouse, on an average, for a month
    • f) Suppliers of materials extend a month’s credit and debtors are provided two months’ credit
    • g) There is a time-tag-in payment of wages of a month and half-a-month in the case of overheads From the above facts, you are required to prepare a statement showing estimated working
12. Q6 Answer the Following 20 marks
    • a. Explain Payback Period and Profitability Index Methods of Capital Budgeting?
    • b. Distinguish between Financial Accounting and Management Accounting?
13. Q6 Short Notes (Any Four) 20 marks
    • 1. Functions of a Management Accountant
    • 3. Combined Ratios
    • 5. Current Liabilities and Quick Liabilities
    • 6. Operating Expenses Paper Subject Code: 79306 Financial Accounting and Auditing - Introduction to Management Accounting
    • 2) AMT
    • 2) WAH Paper Subject Code: 79306 Financial Accounting and Auditing - Introduction to Management Accounting
    • 8) Be
    • 2) Gad
    • 8) ex Paper Subject Code: 79306 Financial Accounting and Auditing - Introduction to Management Accounting
    • 3) AH &) Paper Subject Code: 79306 Financial Accounting and Auditing - Introduction to Management Accounting

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