Bangladesh University of Professionals (BUP)

Faculty of Business Studies (FBS)

Trimester Final Examination –April 2021
MBA(Professional) program
Batch: Sep 2020, Section-A
Accounting for Managers (ACC-7201)
Time: 1 hour 30 Minutes Full Marks: 40
Instructions
• Answer any four (4) questions.
• Answer each question from a fresh sheet. Answer all parts of each question consecutively.
• Answer should be handwritten.
• After completing the exam, please scan the scripts, convert it into a single PDF and submit it to
google classroom.
• For scanning, converting, and sending the script to the link you will get additional 10 minutes
time.
• Exam time will start at 7.00 pm and will end at 8.30 pm. After 8.40 pm no script will be
accepted.

Question No# 1 (10)

Mr. Taposh has recently started reading different articles regarding how to make the best
investment decision in the share market. Mr. Taposh was a government employee and few days
back he got retired. He does not have any knowledge on either share market or how to make
investment in the share market. Since he has received a good amount of money after retirement,
he is thinking to use the money wisely and considering share market as one of the best options.
Assume that you are an accounting graduate and working in a financing company. You have pretty
good knowledge on share market and Mr. Taposh has come to know about you from one of his
relatives.
Guide Mr. Taposh on how he can join the share market, analysis company’s strengths and
weakness and make the best investment decision. You can write as if you are delivering lecture to
Mr. Taposh on Share market investment’s strategies.

Question No# 2 (10)

‘Net income calculated in an income statement does not necessarily mean cash in hand’ –
Explain the statement with number.

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Question No# 3 (10)

Mr. Moin has recently started a construction business and hired one accountant as an employee of
his office. The accountant was talking about Bank Reconciliation Statement and Mr. Moin did not
understand why we require preparing the Bank Reconciliation Statement. He has come to you (The
Accountant) and wanted to know the issue clearly. Explain to Mr. Moin why we need to prepare
bank reconciliation statement. Put a numeric example in your explanation as well.

Question No# 4 (10)

Coffee Cart Supreme sells hot and iced coffee beverages and small snacks. The following is the
last month’s income statement.

Particulars Taka Taka

Revenue 20000
Cost of Beverages and Snacks 8000
Cost of Napkins, Straws etc. 4000
Cost of Rent Cart 2500
Employee Wages 1500 16000
Pretax Profit 4000
Taxes 800
After Tax Profit 3200
Required:

1. What is the total cost function for Coffee Cart Supreme?

2. Calculate the amount of sales needed to reach a target after-tax profit of 6000 Taka.
3. What was the Coffee Cart Supreme’s Degree of Operating Leverage last month?
4. What was the Coffee Cart Supreme’s Margin of Safety in revenue last month?
5. Suppose next month’s actual revenues are 28000 taka pre-tax profit is 7200 Taka. Would
actual costs be higher or lower than expected?

Question No# 5 (6+2+2)

A.
Assets Taka Liabilities Taka
Fixed Asset 435000 Owner’s Capital 480000
Inventory 75000 Long term loan 60000
Accounts Receivable 45000 Accounts Payable 50000
Notes Receivable 25000 Salary Payable 10000
Cash & Bank 20000
Total 600000 Total 600000

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Calculate:
1. Current Ratio
2. Acid-Test Ratio
3. Debt to Asset Ratio
4. Debt to Equity Ratio

B. Net sales 210000, Gross Profit 42000, Operating Expense 8400, Opening inventory 6000 and
Closing Inventory 32000.

Calculate:
1. Profit Margin Ratio
2. Inventory Turnover Ratio (in both time & days)

C. Debt to Equity Ratio is 2:7. If total liabilities are 120000, what will be the total asset?

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