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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. Explain the technique of preparing cash flow statement. What is the utility of such statement to management?

[2]

  1. What do you mean by \"Financial Accounting\"? How is it different from Management Accounting?
  2. How accounting concepts, conventions and principles are different from Accounting Standards? Explain.
  3. Write short notes on any three of the following: Receivables Management, Measurement of Cost of Capital, Break-Even Point, Double Entry System, Procedure of Journalising and Recording, Liquidity Vs. Profitability in capital management.

[3]

  1. What is Financial Accounting? Describe its nature and scope.
  2. Why are Financial Accounts prepared? With your own imaginary figures, prepare financial accounts and prove its relevance.
  3. What is cash management? What are the tools and techniques of cash management?

[4]

  1. What is Financial Accounting? Describe its nature and scope.
  2. What is ratio analysis? Explain the following ratios: Current ratio, Liquid ratio, Operating Ratio and Operating Profit ratio, Net profit ratio, Return on investment.
  3. What is cash management? What are the tools and techniques of cash management?

[5]

  1. Explain the nature and scope of Financial Accounting. What is the difference between Management Accounting and Financial Accounting?
  2. Explain various accounting concepts in detail with the help of suitable examples.
  3. Define capitalization. Explain the two main principles of capitalization.

[6]

  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. Explain and illustrate the following ratios in the interpretation of financial statement: Current Ratio, Gross Profit Ratio, Stock turnover, Operating Ratio.

[7]

  1. Define Financial Accounting. Explain the nature and scope of Financial Accounting. Differentiate between Financial Accounting and Management Accounting.
  2. Explain the nature and objectives of Financial Management. Explain various long-term sources of financing.
  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. Prepare Trading and Profit & Loss Account for the year ended 31 March 2019 and Balance Sheet from the provided Trial Balance.
  3. What is the relevance and significance of Cost of Capital? How can you determine the cost of equity capital in a growth firm?

[9]

  1. What does GAAP stand for?
  2. What is the ideal level for the current ratio?
  3. Explain the term 'capital gearing'.

[10]

  1. Discuss the principles of Financial Accounting. Write the conventions used in Accounting.
  2. Who are the main users of Accounting Information?
  3. Trial balance is an account or statement? Describe.

[11]

  1. How does Management Accounting differ from Financial Accounting?
  2. What do you mean by Target costing?
  3. What do you mean by comparative statement analysis? Give the format of comparative Balance Sheet and describe its importance.

[12]

  1. What are the basic concepts of financial accounting? Explain their importance.
  2. Demonstrate the mechanism of accounting equation using imaginary figures to prove that its two sides are always equal.
  3. 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.

[13]

  1. Define Accounting. What are its main objectives?
  2. Distinguish between Capital expenditure and Revenue expenditure.
  3. Explain the procedure of calculating loss of stock under a Fire Policy.

[14]

  1. Define financial accounting and state its objectives.
  2. Discuss the cost of maintaining receivables.
  3. Explain accounting period concept, cost concept, conservatism convention, and materiality convention.

[15]

  1. Explain briefly External Users of Accounting Information.
  2. Explain briefly Transaction motive and Speculative motive of holding cash.
  3. Prepare Trading and Profit & Loss Account and Balance Sheet based on given trial balance and adjustments.

[16]

  1. Define capital structure and explain the factors determining capital structure.
  2. Discuss the crucial areas in receivables management including credit policies, credit terms, and collection policies.
  3. Calculate Economic Order Quantity (EOQ), number of orders per annum, and time between two consecutive orders using the given data.

[17]

  1. Write importance of computers in Financial Accounting.
  2. Prepare a Trial Balance from the provided balances.
  3. Write short notes on Preference shares, Equity shares, Debentures, and Ploughing back of profit.

[18]

  1. Differentiate between owned capital and borrowed capital.
  2. What is meant by capitalization? Explain the causes and consequences of overcapitalization and undercapitalization.
  3. What do you mean by working capital? Describe the factors influencing the composition of working capital.

[19]

  1. Prepare the Trading and Profit & Loss Account for the year ended 31st March, 2016 and Balance Sheet as on that date considering the provided adjustments.
  2. Analyse transactions and determine the nature of accounts, specifying which account will be debited and which will be credited according to the traditional approach.
  3. Discuss receivables management and explain its importance and factors affecting the size of receivables.

[20]

  1. Why is Branch Debtors Account prepared?
  2. What is the category of Preferential Creditors?
  3. Find out the amount due to Unsecured Creditors and Preferential Creditors based on given data according to Provincial Insolvency Act and Presidency Towns Insolvency Act.

[21]

  1. Write the distinction between management accounting and financial accounting.
  2. What is profit volume ratio (PVR)?
  3. What do you understand by zero-base budgeting? Explain its advantages.

[22]

  1. What are Conventions of Accounting?
  2. What is Nature and Scope of Accounting?
  3. Find out the profit made at the head office and at the branch on the wholesale basis using the given data.

[23]

  1. Distinguish between Cost Accounting and Financial Accounting.
  2. Explain the general principles of Cost Accounting.
  3. Show how you would deal with plant in 'X' contract account with the provided information.

[24]

  1. What is International Financial Reporting Standards (IFRS)?
  2. What is Cash Book? Why is it not necessary to open a Cash Account in the Ledger?
  3. Prepare a Sales Book from transactions and post them into Ledger.

[25]

  1. What is the need for holding inventory?
  2. What are the objectives of preparing trial balance?
  3. Draw a typical organization chart highlighting the finance function of a company and explain the functions of finance manager.

[26]

  1. Define explicit cost and implicit cost.
  2. Discuss weighted average cost of capital.
  3. What are the objectives of inventory management?

[27]

  1. How the working capital is calculated?
  2. What is 'double entry system' of Accounting? Give the rules of debit and credit.
  3. Explain 'Finance is the life of industry' with suitable examples.

[28]

  1. Distinguish Management Accounting from Financial Accounting.
  2. What do you mean by trial balance?
  3. Explain the different rules for journalising the transactions with appropriate illustrations.

[29]

  1. Describe the meaning of Financial Accounting.
  2. What is Break even point?
  3. What do you mean by 'Financial' statement?

[30]

  1. What is working capital cycle?
  2. What are three methods of Journalising?
  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 is cost of goods sold?
  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 is meant by overhead classification?

[33]

  1. Explain the 'Basic Principles' of Accounting.
  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. What is debenture? What are the various methods of redeeming the debentures? Describe their characteristics.

[34]

  1. What is Sinking Fund Method of depreciation?
  2. What is Balance Sheet? Why is it prepared?
  3. Mention the circumstances of Dissolution of a firm and how settlement of Accounts on Dissolution is done.

[35]

  1. What is bank reconciliation statement?
  2. Difference between an income and expenditure account and receipts and payment account.
  3. The following particular relates to the Ganges Literary Society for the year ended 31st Dec. 1999: Subscriptions received Rs. 1,100, Interest received on investment Rs. 380, Net proceeds received from lectures and concerts Rs. 2,320, Rent paid for the use of Hall Rs. 210, Petty cash payments Rs. 100, Advertising paid Rs. 210, Printing expenses paid Rs. 125. The society hold ten 4% debentures of Rs. 1,000 each in the Gaya Prasad Library Ltd. As on 31st December 1999, the society owed Rs. 80 for rent of Hall and Rs. 95 for printing. Prepare society's income and expenditure account for the year ended 31st December 1999 and a balance sheet as on this date.

[36]

  1. What do you mean by Accounting Assumptions? Explain fully.
  2. What is depreciation? What is the need for providing depreciation? Describe two methods of providing depreciation. Also explain the effects of depreciation on P&L Account and Balance Sheet.
  3. A Ltd. issued 10,000 shares of Rs. 100 each at Rs. 120 payable as follows: Rs. 25 on application; Rs. 45 on allotment (including premium); Rs. 20 on 1st call; Rs. 30 on final call. 9,000 shares were applied for and allotted. All money were received with exception of first and final call on 200 shares held by Shyam. These shares were forfeited. Give necessary Journal entries and prepare Bank Account and Balance Sheet.

[37]

  1. What are the limitations of Accounting Principles?
  2. What is goodwill? Explain clearly the different methods of valuation of goodwill.
  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. What is the difference between Book-keeping and Accounting?
  3. What is meant by ledger? Why is it maintained?

[39]

  1. How is Super profit calculated?
  2. From the following information, calculate the value of goodwill by Super Profit Method taking five years' purchase of Super Profit for the same.
  3. Z Ltd. follows LIFO system. From the particulars given below, ascertain the cost of sales and closing inventory under CPP method.

[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. Discuss various requirements of corporate reporting for shareholder's value added.
  3. 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.

[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. From the following information, compute the value of goodwill as per Annuity method: (i) Average capital employed Rs. 4,00,000 (ii) Normal rate of profit 10% (iii) Profit for 2020 Rs. 62,000, 2021 Rs. 59,000 and 2022 Rs. 66,000 (iv) Profit for 2021 has been arrived at after writing off abnormal loss of Rs. 2,000 and profit for 2022 includes a non-recurring income of Rs. 3,000 (v) Goodwill is to be calculated on the basis of annuity of 3 years' purchase of super-profits (vi) The present value of an annuity of Re. 1 for 3 years at 10% p.a. is Rs. 2.4868.

[42]

  1. Define Financial Accounting. What is the difference between Financial Accounting and Management Accounting?
  2. What is Double Entry System? Write its rules and merits.
  3. What is Break-Even Point? Discuss the assumptions, uses and limitations of Break-Even Analysis.

[43]

  1. Explain how procurement and utilization of funds should be accounted in a business organization.
  2. What are the sources of acquiring funds? Highlight the role and cost associated with each.
  3. In what ways is cost defined? Suggest how a business firm can reduce its explicit and implicit costs.

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