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Important Questions for "financial accounting":

[1]

  1. Distinguish between Management Accounting and Financial Accounting.
  2. What is cash flow statement? Discuss its importance.
  3. Describe the objectives and importance of Management Accounting.

[2]

  1. What do you mean by \"Financial Accounting\"? How is it different from Management Accounting?
  2. Why Final Account is prepared? Explain its concept with imaginary example of Profit & Loss A/c and Balance-Sheet.
  3. What do you mean by Analysis of Financial Statement? What are the various techniques? Describe in brief.

[3]

  1. What is Financial Accounting? Describe its nature and scope.
  2. What is Computerized Accounting? Explain the role of Computers in Accounting.
  3. What is Break Even Point? Describe its applications.

[4]

  1. What is Financial Accounting? Describe its nature and scope.
  2. What are the various sources of long-term finance?
  3. Distinguish between Stock and Inventory and explain with an example Economic Order Quantity.

[5]

  1. Explain the nature and scope of Financial Accounting. What is the difference between Management Accounting and Financial Accounting?
  2. Discuss in detail the application of computers in Accounting.
  3. Define 'Cost of Capital'. How will you determine the Cost of Capital from different sources?

[6]

  1. Explain the nature and scope of Financial Accounting. What is the difference between Management Accounting and Financial Accounting?
  2. Define 'Cost of Capital'. How will you determine the Cost of Capital from different sources?
  3. Write short notes on any three of the following: Accounting Standards in India, Double Entry System, Break-even analysis, Cost of debt, Cash Management, Inventory Management.

[7]

  1. Define Financial Accounting. Explain the nature and scope of Financial Accounting. Differentiate between Financial Accounting and Management Accounting.
  2. Give the journal entries for various transactions as described.
  3. Based on the trading results provided, calculate P/V Ratio, Fixed Cost, Break-Even Point, profit for a given sales figure, and the sales needed for a desired profit.

[8]

  1. Define Financial Accounting. Explain the nature and scope of Financial Accounting. Differentiate between Financial Accounting and Management Accounting.
  2. Explain the objectives of Ratio Analysis. Discuss various ratios used to examine the liquidity and solvency positions of a firm.
  3. What are the factors affecting the cash needs of a firm? Explain the various steps involved in scientific cash management.

[9]

  1. What are the objectives of ledger accounts?
  2. What are the components of capital structure?
  3. How is the reorder level calculated?

[10]

  1. Discuss the principles of Financial Accounting. Write the conventions used in Accounting.
  2. Depreciation is a non-cash item. Explain.
  3. What is Bank Reconciliation Statement? Why is it prepared?

[11]

  1. How does Management Accounting differ from Financial Accounting?
  2. Describe the functions and role of Management Accountant.
  3. Write short notes on Activity Based Costing and Quality Costing.

[12]

  1. What are the basic concepts of financial accounting? Explain their importance.
  2. Prepare a flexible budget for the production at 80% and 100% activity based on the provided data regarding raw materials, direct labour, direct expenses, factory expenses, and administration expenses.
  3. From the given balance sheets of X Ltd., propose a schedule of changes in working capital and a statement of flow of fund.

[13]

  1. Distinguish between Book-keeping and Accounting.
  2. Write Journal entries of the following: Goods worth 5,000 and Cash 2,000 were stolen by an employee. Provide 15% depreciation on Furniture costing 10,000.
  3. Mention the necessary entries in the books of the buyer as well as the seller when goods are sold on the hire-purchase system.

[14]

  1. Define financial accounting and state its objectives.
  2. What is cash management and what are its objectives?
  3. Explain the principal motives for holding cash.

[15]

  1. What do you understand by Receivable Management? Explain its importance and the factors affecting the size of receivables.
  2. Explain briefly Components of working capital.
  3. Explain briefly the objectives of holding inventory.

[16]

  1. Describe various accounting conventions and concepts.
  2. Pass the necessary journal entries for the provided transactions, post them into ledger, and prepare Trial Balance using balance method.
  3. Define capital structure and explain the factors determining capital structure.

[17]

  1. Write importance of computers in Financial Accounting.
  2. Differentiate between Book-keeping and Accounting.
  3. Find out the average collection period from the given financial data.

[18]

  1. Prepare the Trading and Profit & Loss Account for the year ended 31st March, 2016 and Balance Sheet as on that date taking into account the provided adjustments.
  2. Differentiate between owned capital and borrowed capital.
  3. What do you understand by receivable management? Explain its importance and the factors affecting the size of receivables.

[19]

  1. Explain the concept of fund flow statement.
  2. Explain the revenue recognition concept.
  3. Describe the factors influencing the composition of working capital.

[20]

  1. What do you mean by Gross Profit?
  2. What is the relationship between Hire Purchase Price and Cash Price?
  3. Prepare Branch Account in the books of Head Office showing branch profit using given data.

[21]

  1. Write the distinction between management accounting and financial accounting.
  2. What is stock turnover ratio?
  3. Discuss the advantages and limitations of responsibility accounting.

[22]

  1. What are Rules of Debit and Credit?
  2. What is Nature and Scope of Accounting?
  3. What journal entries are passed in the books of landlord and lessee regarding royalties?

[23]

  1. Distinguish between Cost Accounting and Financial Accounting.
  2. Prepare a statement of cost and calculate the price to yield a profit of 20% on selling price.
  3. Discuss in brief the different methods of Cost Accounting.

[24]

  1. Accounting is an Art and Science both.
  2. What is Cash Book? Why is it not necessary to open a Cash Account in the Ledger?
  3. What are Preferential liabilities according to Presidency towns Insolvency Act?

[25]

  1. How are the accounts classified?
  2. What are the objectives of preparing trial balance?
  3. Give the difference between single and double column cash-book.

[26]

  1. What is fund flow statement? Explain.
  2. Define economic order quantity (EOQ). How can it be computed? What are its limitations?
  3. What is a slack byte? How does it affect the implementation of structures?

[27]

  1. What is 'going concern concept' of Accounting?
  2. How the working capital is calculated?
  3. Write a detailed note on 'Application of Computer in Accounting'.

[28]

  1. Distinguish Management Accounting from Financial Accounting.
  2. What do you mean by trial balance?
  3. What is the use of cash book?

[29]

  1. Describe the meaning of Financial Accounting.
  2. What do you mean by Double Entry system of Accounting?
  3. Describe in shorts different accounting concepts.

[30]

  1. What is working capital cycle?
  2. What do you mean by GAAP?
  3. Explain the following terms: Break Even point, Trial Balance, Working Capital Policies.

[31]

  1. Define Cost Accounting. Discuss its significance to the management. How does it differ from Financial Accounting?
  2. What do you mean by ABC analysis?
  3. Write a note on classification of cost.

[32]

  1. Differentiate Financial Accounting and Cost Accounting.
  2. What is the meaning of Serap?
  3. What are the characteristics of unit costing? To what type of concerns is the output costing method suitable?

[33]

  1. Explain how the following transactions would be recorded in a Cash Book with Cash and Bank Columns: Deposit of Cash into Bank, Withdrawal of money from Bank for office use, Deposit of cheques (received from others) into Bank, Dishonour of cheques deposited into Bank.
  2. Shiva Ltd. invited applications for equity shares with payments in installments. Pass the Journal entries of the transactions assuming all sums have been received.
  3. Eti Ltd. issued equity shares with payments in installments. Some shares were forfeited due to non-payment and reissued at a discount. Pass the necessary Journal entries in the books of Eti Ltd.

[34]

  1. What do you understand by Petty Cash Book?
  2. What is Balance Sheet? Why is it prepared?
  3. Show the Machinery Account for three years based on the given transactions and depreciation rate.

[35]

  1. Difference between an income and expenditure account and receipts and payment account.
  2. A firm purchases a plant for a sum of Rs. 10,000 on 1st January, 1995. Installation charges are Rs. 2,000. Plant is estimated to have a scrap value of Rs. 1,000 at the end of its useful life of five years. You are required to prepare the 'Plant Account' for five years charging depreciation according to straight line method.
  3. Define goodwill. How does it arise? Explain the treatment of goodwill in partnership accounts on the admission of a new partner: (a) When he brings cash for his share of goodwill and cash is retained in business (b) When he does not bring cash for his share of goodwill. Illustrate your answer by means of Journal entries.

[36]

  1. What do you mean by Accounting Assumptions? Explain fully.
  2. Chandra Ltd. purchased a second-hand machine for Rs. 8,000 on 1st April, 2008. They spent Rs. 3,500 on its overhaul and installation. Depreciation is written off 10% p.a. on the original cost. On 30th June, 2011, the machine was found to be unsuitable and sold for Rs. 6,500. Prepare the Machinery Account from 2008 to 2011, assuming that accounts are closed on 31st December.
  3. What do you mean by Final Accounts? What is their necessity?

[37]

  1. What is Bank Reconciliation Statement? Explain the purpose of preparing such a statement.
  2. What is a Trading Account? How does it differ from a Manufacturing Account?
  3. Megha and Swati share profits & losses equally. The Balance Sheet of the partners stood at 31st December 2011 as follows: Liabilities - Creditors Rs. 23,000; Loan by Swati Rs. 30,000; Megha's Capital Rs. 10,000; Swati's Capital Rs. 40,000. Assets - Buildings Rs. 50,000; Debtors Rs. 31,000; Stock Rs. 22,000. They decided to dissolve the Partnership. The realisation of Assets were Building 60%, Debtors 70%, Stock 75%. Prepare necessary accounts.

[38]

  1. What are the basic concepts of Financial Accounting? What are their limitations?
  2. State briefly the necessity of providing depreciation.
  3. Prepare an Income and Expenditure Account for the year ended 31st March, 2010 from the given Receipts and Payment Account.

[39]

  1. Explain under CCA method what is meant by Monetary Working Capital Adjustment.
  2. Z Ltd. follows LIFO system. From the particulars given below, ascertain the cost of sales and closing inventory under CPP method.
  3. What are the various models of valuing intangible assets? Discuss each of them.

[40]

  1. What do you understand by Amalgamation of companies? What accounting entries are made in the books of Amalgamating company and Amalgamated company?
  2. X Limited adopts FIFO method. From the detail given below, ascertain the value of cost of sales and closing stock under C.P.P. method.
  3. The following are the balance sheet of P Ltd. and S Ltd. as on 31st March, 2020. On 1st April, 2020, P Ltd. takes over S Ltd. on the following terms: (i) P Ltd. will issue 3,50,000 equity shares of 10 each at par to the equity shareholders of S Ltd. (ii) P Ltd. will issue 11,000, 11% preference shares of 100 each at par to the preference shareholders of S Ltd. (iii) The debentureholders of S Ltd. will be converted into an equal number of 12.5% debentures of the same denomination. (iv) The liquidation expenses of S Ltd. amounting 40,000 will be paid by P Ltd. in cash. (v) The statutory reserves of S Ltd. are to be maintained for two more years. You are required to give journal entries in the books of P Ltd. assuming that the amalgamation is in the nature of merger.

[41]

  1. What do you understand by amalgamation of Companies? Discuss the merits and demerits of amalgamation.
  2. Define a holding and subsidiary company and state what documents relating to subsidiary company should be attached to the Balance Sheet of holding company.
  3. What accounting entries are made in the books of Amalgamating company and Amalgamated company?

[42]

  1. Define Financial Accounting. What is the difference between Financial Accounting and Management Accounting?
  2. What do you understand by Accounting standards? Write a note on Indian Accounting Standards.
  3. What is Double Entry System? Write its rules and merits.

[43]

  1. What are the theories propagated to arrange and utilize working capital?
  2. In what ways is cost defined? Suggest how a business firm can reduce its explicit and implicit costs.
  3. How does a firm attain profit maximization and wealth maximization?

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