WK 3

NOVEMBER 2015 77354/PMD1D

Time : Three hours Maximum : 75 marks

PART A — (10 × 1 = 10 marks)

Answer any TEN questions.

1. Define Accounting.

2. Who is Creditor?

3. What is meant by Financial Accounting?

4. What is meant by Fund flow statement?

5. Define Turnover ratios.

6. Explain the limitations of capital budgeting.

7. What is meant by pay-back method?

8. What is meant by Cost Accounting?

9. Explain the cost volume profit analysis.

10. What is the advantage of process costing?

11. What is meant by break even point?

12. What do you mean by MIS?

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PART B — (5  5 = 25 marks)

Answer any FIVE questions.

13. What are the limitations of accounting principles?

14. What is Balance Sheet? Why it is prepared? Give a

specimen of the Balance Sheet.

15. What do you meant by fund from operation?

16. Distinguish between cash flow and fund flow

statement.

17. Prepare a chart showing the different elements of

cost.

18. What do you understand by management

efficiency ratio? How does it help the management
to solving various problem?

19. State the differences between direct costing and

absorption costing.

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PART C — (4  10 = 40 marks)

Answer Question No.20 compulsory and answer any

THREE questions from 21 to 24.

20. From the following forecasts of Income and

Expenditure, prepare a cash budget for three
months commencing 1st June when the bank
balance was Rs.1,00,000.
Months Sales PurchasesWages Factory Ad. Selling
expenses expenses
Rs. Rs. Rs. Rs. Rs.
April 80,000 41,000 5,600 3,900 10,000
May 76,500 40,500 5,400 4,200 14,000

June 78,500 38,500 5,400 5,100 15,000

July 90,000 37,000 4,800 5,100 17,000

August 95,000 35,000 4,700 6,000 13,000

A sales commission of 5% on sales, due two month

after sales, is payable in addition to selling
expense, plant valued at Rs.65,000 will be
purchased and paid for in August and the dividend
for the last financial year of Rs.15,000 will be paid
in July. There is 2 months credit period allowed to
customers and received from suppliers.

21. Discuss the classification of ratios.

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22. Describe the various steps involved in preparation

of Fund flow statement.

23. The P/V ratio of a firm dealing in Electrical

equipment is 50%. And the margin of safety is
40%. Find out BEP and the net profit, if sales
volume is Rs.50,00,000.

24. Describe the various steps involved in Rational

Decision making.

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