Question Bank

(I and II Modules)
Accounting For Managers

Section A: (2 Marks)

1. What is Business entity concept?

2. Define Accounting Standard.
3. What is Written Down Value Method of depreciation?
4. State the major purposes of accounting information.
5. State the various forms of presenting a Balance Sheet. Which form is more prevalent in India.
6. What is window dressing?
7. What do you mean by GAAP.
8. What is financial statement analysis?
9. Explain Accounting equation?
10. What do you mean by Marshalling of Balance Sheet?
11. Differentiate between Reserve and Provision?
12. What do you mean by ‘Dual Aspect’ concept.
13. What is compound journal entry?
14. What is depreciable asset?
15. Mention benefits of Double Entry System.
16. What do you mean by Journal Proper?
17. What is Going Concern concept?
18. Mention components of Current Assets.
19. What is Straight Line Method of depreciation?
20. What are intangible assets?
21. What are the limitations of financial statements?
22. Explain the difference between capital and revenue expenditure.
23. Explain the difference between capital and revenue receipts.
24. Define the term ‘revenue receipt’.
25. Explain each of the following accounting terms.
(i) Revenue expenditure
(ii) Capital receipt
(iii) Revenue Receipt
(iv) Capital expenditure

Section B ( 5 marks)
1. What is GAAP? Explain the need and Objectives of Accounting standards.
2. List the users of financial statements and state their informational needs.
3. How is the income summary of the last accounting period connected with the balance sheet of the
future accounting periods? Explain using the balance sheet and income summary equations.
4. Explain the various components of corporate financial statements.
5. What are the limitations of trend analysis?
6. Explain the role of accounting in corporate governance?
7. Explain the main branches of accounting?
8. Draft a projected Balance Sheet and explain how to read the balance sheet?
9. Explain the concepts underlying the preparation of financial statements.
10. Explain the importance of IFRS and its implementation.
11. Discuss the frauds and ethical issues in accounting.
12. Explain the factors influencing depreciation.
13. What is window dressing? Explain how to beat window dressing.
14. Write a note of Human Resource Accounting?

Section C ( 10 marks)
1. What is Financial analysis? State and explain the tools used for the analysis of financial statements.
2. Distinguish between SLM and WDV method of depreciation. Which method is more appropriate to
report earnings? Why? Illustrate with examples.
3. What is window dressing? Explain the motives and forms of window dressing of financial statements.