Amity B. Com. 4 Sem Management Accounting

Amity B. Com. 4 Sem Management Accounting
Q1. Explain position of Management Accounting in the organization?
Q2. Explain analysis of Financial Statements along with its objectives?
Q3. Elaborate any 3 types of liquidity ratio?
Q4. Write short note on any three of the following.
a) Difference between cash and fund.
b) Flexible Budgets and Master Budgets
c) Concept of Capital of Capital Budgeting
d) Advantages and Limitations of Budgetary Control
e) Short-term Financial Ratios and Long-term Financial Ratios
Q5. What is Fund Flow Statement and how funds flow analysis is usefull for management?
Q6. Why its importance to Establishing a system of Budgetary Control?
Q7. Explain different methods of Ranking Investment proposals?
Q8. Define DUPONT Control Chart?

Comparing Ratios with Industry

Following information are available for SRK Co. along with various ratios relevant to the particular industry which it belongs.

Balance Sheet As at 31.03.2014
Liabilities Amount Assets Amounts
Equity Share Capital 2,400,000.00 Fixed Assests 1,210,000.00
10% Debenture 460,000.00 Cash 440,000.00
Sundry Creditors 330,000.00 Sundry Debtors 550,000.00
Bills Payable 440,000.00 Stocks 1,650,000.00
Other Current Liabilities 220,000.00
3,850,000.00 3,850,000.00

Statement of Profitability for the year ending 31.03.2014
Particulars Rs. Rs.
Sales 5,500,000.00
Less: Cost of Good Sold:
Material 2090000
Wages 1320000
Factory Overheads 649000 44,059,000.00

Gross Profit 1,441,000.00
Less: Selling and Distribution Cost 550000
Admin Cost 614000 1,164,000.00
Earning before Interest and Taxes 277,000.00
Less: Interest Charges 46,000.00
Earning before Taxes 231,000.00
Less: Tax @50% 115,500.00
Net Profit(PAT) 115,500.00
Industry Norms
Current Assets/Current liabilities 2.5
sales/Debtors 8.0
Sales/Stocks 9.0
Sales/Total Assets 2.0
Net Profit/Sales 3.5%
Net Profit/Total Assets 7.0%
Net Profit/ Net Worth 10.5%
Total Debt/Total Assets 60.0%

Q1. Find out the relevant ratios relating to SRK Co
Q2. Give your comments on Strengths and Weakness of SRK Co.
Q3. Compare its ratios with industry Norms.

1.Managerial accounting does not include
2.Managerial accounting information is generally used by
3.What helps in ascertaining costs beforehand
4.The scope of cost accounting include
5.Which one is not the limitation of the Management Accounting.
6.Which of the following is not a technique of Financial Statement
7.Which of the following ratio indicates the short-term liquidity of a business?
8.Which of the following is true when a debtor pays his dues?
9.An income statement reports a business’s financial___
10.The sections of Income Statements are
11.Accounting Ratios are important tools used by
12.DU PONT Analysis deals with:
13.SRK Ltd. has a Current Ratio of 3: 2 and Net Current Assets of Rs. 5,00,000.What are the current assets.
14.Debt to Total Assets Ratio can be enhanced by
15.Which of the following statements is correct?
16.Capital Budgeting is a part of
17.Capital Budgeting deals with
18.Which of the following is not used in Capital Budgeting?
19.Capital Budgeting Decisions are
20.A sound Capital Budgeting technique is based on
21.Cash Budget does not include
22.Which of the following is not true of cash budget?
23.Budgetary control involves all but one of the following:
24.Under responsibility accounting, the evaluation of a manager’s performance is based on matters that the manager
25.Responsibility centers include
26.Which of the following is NOT a cash outflow for the firm
27.Which of the following would be considered a use of funds
28.For a profitable firm, total sources of funds will always total uses of funds
29.Which of the following would be included in a cash budget?
30.Uses of funds include a
31.Which of the following is not an advantage of Budgets
32.The Process of Budgetary control includes
33.Which of the following is not the advantage of Budgetary control
34.Which of the following is problem in budgeting
35.The investment in total current assets is known as
36.An accounting system wherein the operations are broken down into cost centers controllable by a foreman, sales manager, or supervisor, is known as
37.The basic difference between a static budget and a flexible budget is that
38.Important factors consider for sales budget are
39.The Real Cashflows must be discounted to get the present value at a rate equal to
40.Risk in Capital budgeting is same as

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