ACCOUNTING FOR MANAGERS

Guide to preparation
Syllabus

UNIT I

Accounting – Branches of accounting – Financial Accounting – Importance and Functions –

Book Keeping – Systems of Book Keeping- Double Entry Book Keeping - Journal – Ledger –
Cash Book – Bank Reconciliation Statement- Trial Balance- Generally Accepted Accounting
Principles (GAAP)- Accounting concepts and conventions.

UNIT II

Capital and Revenue – Depreciation – Methods of charging depreciation – Final Accounts,

Trading and Profit and Loss Account- Balance sheet.

UNIT III

Management Accounting- Meaning, Definition, Nature, Objectives, Scope, Importance.

Distinction between financial, cost and management accounting systems. Financial statement
analysis – tools – comparative financial statements, common-size financial statements, trend
analysis, Ratio Analysis – Du Pont analysis.

UNIT IV

Funds Flow Analysis – Schedule of Changes in Working Capital – Funds Flow StatementCash
Flow Analysis – Cash Flow Statement.

UNIT V

Human Resource Accounting, Forensic Accounting, Sustainability Reporting, Responsibility

Accounting – International Accounting Standards – IFRS
Theoretical questions compiled from previous question papers & 2020 scheme

UNIT 1
1. What are the functions of financial accounting?
2. Elucidate the usage of journals and ledgers to record accounting transactions?
3. Illustrate the important accounting concepts that serve as a guide in preparation of
accounting statements?
4. Give any three accounting concepts?
5. Differentiate trade discount and cash discount?
6. Explain accounting concepts and conventions?
7. Explain different branches of accounting?
8. What is double entry system?
9. What is meant by convention of conservatism?
10. What is meant by accounting standard?
11. What are the advantages of subsidiary books?
12. What is ledger?
13. Explain nominal account?
14. Define accounting? Discuss the importance of accounting?
15. Distinguish between double entry and single entry system?
16. Explain accrual principle?
17. Explain different rules for journalizing the transactions with appropriate illustrations?
18. What is meant by closing entries?
19. Explain business entity concept?
20. What is compensating errors?
21. What is money measurement concept?
22. Error of commission.
23. Define the term financial accounting and discuss its function.
24. What do you mean by journal? Why it is called book of original entry.
25. Distinguish between accounting concepts and accounting conventions.
26. What is cash book? How it is prepared.
27. How do you analyze the financial position of a company from the point of view of a)
investor b) creditor c) financial executive of the company
28. State the important features of double entry system of accounting
29. What are the classifications of accounting?
30. What is bank reconciliation statement? What are the reason for the difference in two
balances?
31. What is accounting standards?
32. Discuss the various types of accounting.
33. Define accounting. Listing its purposes.
34. Describe the functions of accounting.
35. What is GAAP? Explain its meaning and significance in accounting?
36. What is Trial Balance? Explain its significance.
37. Explain different branches of accounting.
38. Write an essay on Accounting Concepts.

UNIT 2
1. What is depreciation?
2. Describe with example the adjustment for interest on drawings.
3. Draw up the format of company final accounts showing important items in the order.
4. What is revenue expenditure?
5. Elaborate accounting equation?
6. Explain the treatment of the following items while preparing final accounts.
a. Provision for bad debts.
b. Depreciation.
c. Outstanding expenses.
7. What is adjusting entry? Why it is necessary to pass at the time of preparing final
accounts?
8. Explain the treatment of the following items while preparing final accounts.
a. Provision for discount on debtors.
b. Goods withdrawn by proprietor for personal use.
c. Pr5epaid expenses.
d. What is balance sheet? Why it is prepared?
9. How is the account relating to provision for doubtful debts kept? What are the objects of
this account? How it is shown in the balance sheet?
10. How depreciation under straight-line method is calculated and accounted?
11. Explain the accounting equation and various principles of accounting with example.
12. What is meant by capital expenditure.
13. What is need for adjustment entries?
14. What is a Balance Sheet? What do you understand by Marshalling used in the balance
Sheet? Illustrate the different forms of marshalling.
15. What is the purpose of trading, profit and loss account and balance sheet?
16. Explain the need and significance of depreciation? What are the factors should be
considered for determining amount of depreciation?
17. Differentiate between Capital and Revenue Expenditure.
18. Define depreciation. What are the objectives of charging depreciation? Explain the causes
of depreciation.

UNIT 3
1. What are current liabilities?
2. Write a short note on ratio analysis?
3. Write a brief note on limitations of accounting ratios?
4. Bring out the importance of ratio analysis for intra-firm comparison including
circumstances responsible for its limitations?
5. Write a note on objective of ratio analysis?
6. List out the advantages and limitations of ratio analysis?
7. Explain the use of liquidity ratio with example?
8. How management accounting does help planning and controlling functions in an
organization?
9. What is debt-equity ratio?
10. Explain current assets?
11. What is trend analysis?
12. Explain common size statement.
13. Explain different profitability ratios.
14. What are the tools for financial statement analysis?
15. What are the tools for financial statement analysis? Explain.
16. Discuss the ratios used to test long-term solvency of a business unit.
17. State the importance of ratio analysis.
18. What is inter-firm comparison? Why it is needed?
19. Describe the objectives of management accounting.
20. Distinguish between management accounting and financial accounting?
21. What is Du Pont analysis?
22. Explain various tools of management accounting?
23. Define management accounting.
24. What are the advantages of ratio analysis?
25. Discuss the classification of ratios.
26. Write a short note on activity ratio.
27. Enumerate various requisites for installation of management accounting system?
28. Explain common size profit and loss account?
29. What are the tools used in Management Accounting?

UNIT 4
1. Compare and contrast fund flow statement with cash flow statement.
2. Explain the method of preparing fund flow statement.
3. Explain cash flow.
4. What is fund?
5. What do you mean by fund from operations?
6. Distinguish between cash flow statement and fund flow statement.
7. What do you mean by fund from operations? What are the different approaches of
computation of fund from operation?
8. How cash flow from operating activities can be computed.
9. What are the merits of cash flow statement?
10. Draft a cash flow statement with imaginary figures.
11. Differentiate fund flow statement with balance sheet.
12. What are the objectives of preparing fund flow statement?
13. Differentiate between Fund flow statement and Cash flow statement.

UNIT 5
1. What is profit centre?
2. What is cost centers?
3. What is meant by responsibility accounting?
4. ‘Responsibility accounting is an important device for control’ - Discuss.
5. Distinguish between IFRS and IAS.
6. Write an essay about essential features of Responsibility accounting?
7. Explain the concept human resources accounting. State its importance.
8. Elucidate different models/ approaches suggested for valuation of human resources.
9. Write a note on human resources accounting in India.
10. Differentiate historical cost approach with replacement cost approach.
11. What is IFRS? What are its benefits?
12. What are the branches of forensic accounting?
13. What is forensic accounting? What are the steps to be followed in forensic accounting?
14. What are the characteristics of forensic accounting? Why an accountant commits fraud.
15. What is sustainability reporting?
16. Explain Responsibility accounting.
17. Write an essay on International Accounting Standards.
18. Write a short note on: (i) Forensic accounting (ii) Sustainability Reporting.