This document contains instructions for an accounting and financial management exam consisting of 8 questions worth a total of 60 marks. Students must answer 5 questions, with each question carrying equal marks. The questions cover topics such as the role of accountants, trial balances, accounting ratios, cash flow statements, absorption and marginal costing, cost-volume-profit analysis, sales budgets, standard costing variances, computerized accounting systems, the accounting cycle, accounting classifications, and ratio analysis. Questions also address over/under capitalization, and distinguishing between forecasting and budgeting.
This document contains instructions for an accounting and financial management exam consisting of 8 questions worth a total of 60 marks. Students must answer 5 questions, with each question carrying equal marks. The questions cover topics such as the role of accountants, trial balances, accounting ratios, cash flow statements, absorption and marginal costing, cost-volume-profit analysis, sales budgets, standard costing variances, computerized accounting systems, the accounting cycle, accounting classifications, and ratio analysis. Questions also address over/under capitalization, and distinguishing between forecasting and budgeting.
This document contains instructions for an accounting and financial management exam consisting of 8 questions worth a total of 60 marks. Students must answer 5 questions, with each question carrying equal marks. The questions cover topics such as the role of accountants, trial balances, accounting ratios, cash flow statements, absorption and marginal costing, cost-volume-profit analysis, sales budgets, standard costing variances, computerized accounting systems, the accounting cycle, accounting classifications, and ratio analysis. Questions also address over/under capitalization, and distinguishing between forecasting and budgeting.
All Questions Carry Equal Marks All parts of the questions must be answered at one place only
1 a Explain the role of an Accountant in the modern organizations [12M]
What is a Trail Balance? What are the objectives of preparing a Trail Balance 2 a What are the limitations of Accounting Ratios? [4M] b Identify the three major types of activities classified in a cash flow statement [8M] and explain each activity’s cash inflows and cash outflows. 3 a Distinguish between Absorption costing and Marginal costing [6M] b What are the basic assumptions and limitations of CVP analysis [6M] 4 a What is a sales budget? How is it prepared? [4M]
b A Company manufacturing ‘distempers’ operated a costing system. The [8M]
standard cost of one of the products of the company shows the following standards: Materials Quantity Standard price per kg Total (Rs.) A 40 kg 75 3,000 B 10 kg 50 500 C 50 kg 20 1,000 Total material cost per unit = 4,500 The standard input mix is 100 kg. and the standard output of the finished product is 90 kg. The actual results for the period are: A = 2,40,000 kg @ Rs. 80 per kg B – 40,000 kg @Rs. 52 per kg. C= 2,00,000 kg @ Rs. 21 per kg. Actual output of the finished product = 4,20,000 kg. You are required to calculate the material price, mix and yield variance
5 a What do you understand about the computerized accounting system? [8M]
b Write about the documents that are used for data collection? [4M] 6 a Explain the ‘Accounting Cycle” [5M] b How do you classify the accounts? Explain the rules of debit and credit with [7M] respect to different types of accounts. 7 a The following information is provided to you [8M] Selling price per unit Rs. 40 Variable cost per unit Rs. 24 Fixed cost per unit Rs. 6 Profit per unit Rs. 10 Present sales volume is 2,000 units Your are required to calculate i. P/V ratio and Breakeven point ii. Margin of safety iii. Sales required to earn a profit of Rs. 26,000 iv. Profit at a sales volume of 2,500 units b What are the advantages of Ratio analysis? [4M] 8 a What do you understand by the terms over capitalization and under [6M] capitalization? b Distinguish between forecasting and budgeting? [6M]