Accounting and Finance for Managers

Question Bank
Module I
Part A
1. Define Accounting.
2. What are the three functions of accounting? Explain.
3. List the qualities of accounting.
4. What is cash system of accounting?
5. What is accrual system of accounting?
6. What is personal account? Give examples.
7. What is Real account? Give examples.
8. What is Nominal account? Give examples.
9. What is a journal? Give format of journal.
10. What is a ledger?
11. What is meant by ledgering?
12. Explain the golden rules of accounting.
13. What is a Trial Balance?
14. What is a Profit and Loss Account?
15. What is Trading Account?
16. What is Depreciation?
17. What is the purpose of charging depreciation?
18. List the various methods of providing depreciation.
Part B
1. Illustrate the Accounting process.
2. Classify the various kinds of values in accounting process.
3. Discuss briefly the utility of financial statements.
4. Explain briefly any three accounting concepts.
5. Explain briefly the various accounting conventions.
6. Write brief note on various classification of accounts.
7. Give the proforma of a Trading Account.
8. Give the proforma of a Balance Sheet.
9. Problems in Journal.
10. Problems in Leger.
11. What is Trail Balance? What is the purpose of preparing trial balance?
12. Give the adjustment entries for
a) Outstanding expenses b) Prepaid Expenses c) Closing stock
13. Give the adjustment entries for
a) Income Received in Advance b) Bad debts c) Outstanding Income
14. Discuss the reasons for providing depreciation?
15. What are the merits and demerits of straight line method of depreciation?
16. What are the merits and demerits of Written down value method of depreciation?

Part C
1. Explain in detail the various concepts and conventions in accounting.
2. Problems Preparation of Trading and Profit and Loss A/c and Balance Sheet
Module 2
Part A
1. Define financial statement analysis.
2. List out the categories of financial statement analysis.
3. What are the objectives of comparative financial statements?
4. Write brief note on trend analysis.
5. Define accounting ratio.
6. What is current ratio? Give the formula.
7. What is Acid test ratio? Give the formula.
8. What is Super Quick Assets ratio? Give the formula.
9. Write short note on Debt-Equity ratio. Give formula.
10. What is proprietary ratio? Give formula.
11. Write short notes on Fixed assets ratio.
12. What is Gross profit ratio? Give formula.
13. What is Net profit ratio? Give formula.
14. What is operating profit ratio? Give formula.
15. Write short note on return on assets. Give formula.
16. Write short note on return on capital employed. Give formula.
17. What is stock turnover ratio? Give formula.
18. What is Debtors turnover ratio? Give formula.
19. What is Creditors turnover ratio? Give formula.
Part B
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Discuss the purpose and utility of ratio analysis.

Discuss briefly the classification of accounting ratios.
Discuss in detail the short-term solvency ratios.
Discuss in detail the profitability ratios.
Discuss briefly the Dupont analysis.
Briefly discuss the limitations of ratio analysis
Problems in Ratio analysis
Part C

1. Discuss the purpose, utility and limitations of ratio analysis.

2. Problems in comparative balance sheet and income statement
3. Problems in common size balance sheet and income statement

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