Master of Commerce (M.Com.) MCom Accountancy SEM IV ADVANCE ACCOUNTANCY Advanced Accountancy Course III Advanced Financial Management Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q2 Working notes and assumptions should form part of your answers
2. Q3 Use of simple calculator is allowed
3. Q1 An enterprise can make either of two investments at the beginning of year 2018. Assuming a required rate of return 10%., evaluate the investment proposals under Depreciation is provided under straight line method. The present value of Rs 1 to be received at the end of each ear, at 10% p.a. is given below: 15 marks
4. Q1 Prepare Cash Budget for January-June from the following information 15 marks
5. Q1 The estimated sales and expenses are follows:
6. Q2 20% of the sales are on cash basis and the balance on credit
7. Q3 The firm gross margin of 25% on sales
8. Q4 50% of the credit sales are collected in the month following the sales, 30% in the second month and 20% in the third month
9. Q5 Material for the sales of each month is purchased one month in advance on a credit for
10. Q6 Wages and salary are paid after month. Miscellaneous expenses are paid after 1
11. Q7 Debentures worth Rs 40000 were sold in January
12. Q8 Cash the end of December Rs 60000
13. Q2 ABC Ltd. has prepared the following projection for a year The company proposes to increases the credit period allowed to its customers from one month to two months. It is envisaged that the change in the policy as above will increase the sales by 8%.The company desires a return of 25% on its investment based on total cost. You are required to examine and advise whether the proposed Credit Policy should be implemented or not 15 marks
14. Q2 PQR Company Ltd.is considering to select a machine out of two mutually exclusive machines. — The company cost of capital is 12% and corporate tax rate is 30% information relating to both machine is as follows: Depreciation.to be charged on straight line basis: Scrap value of both machines will be nill You are required to calculate A firm’s inventory planning period is one year .Its inventory requirement for this period is 1600 (15) units. Assume that its order costs are Rs 50 per order. The carrying costs are expected to be Rs1 per unit per annum for an item firm can procure inventories in various lots as follows: 15 marks
    • (a)1600 units. (b) 800 400 units. (d) 200 units. Which of the these order quantities is the economic order quantity? Use Table Method M/S Humid Ltd. give the following information in respect of two components W and X usedin (15) the manufacturing process : Calculate for each component:
15. Q4 a. Multiple Choice Questions: 8 marks
16. Q1 Seasonal working capital is
    • (a) Permanently required (b) Fixed in nature
    • (c) Required to meet seasonal needs (d) None of the above
17. Q2 is a liability of a bank
    • (c) Certificate of Deposits (d) Junk Bonds
18. Q3 is not a capital budgeting decision
    • (c) Replacenlent of Assets (d) Inventory level
19. Q4 The number of years taken by a project to recover the initial investment is called
    • (c) Profit period (d) None of these
20. Q5 The term net working capital refers to
    • (a) The excess of current assets over current liabilities (b)The liquid assets
    • (c) The total current assets less provision (d) None of these
21. Q6 will ensure high return of investment
    • (c) Shortage of working capital (d) None of these
22. Q7 The Transaction Motive for holding cash is
    • (c) Purchase of Assets (d) Payment of Dividends
23. Q8 Receivable Management deals with
    • (a) Receipts of raw material (b) Debtors collection
    • b. State the following statements are True or False: 7
24. Q1 Average Inventory in EOQ model is of EOQ
25. Q2 Cash Budget represents cash receipts and cash payments VED analysis divide the inventory into three categories
26. Q4 The term net working capital refers to net current assets
27. Q5 Increasing the credit period by suppliers also increase the cash conversion cycle While measuring cash inflows and outflows of a project, depreciation amount should be added back to profit before tax
28. Q7 In India, papers can be issued for any amount and for any duration
29. Q4 Write a short note (Any three) 15 marks
30. Q2 ABC analysis
31. Q3 Sources of Finance
32. Q4 Receivable management
33. Q5 Depreciation as a source of finance

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