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Important Questions for "financial accounting":

[1]

  1. Distinguish between Management Accounting and Financial Accounting.
  2. What do you mean by Accounting for managerial decisions?
  3. Describe the functions, status and responsibility of Management Accountant.

[2]

  1. What do you mean by \"Financial Accounting\"? How is it different from Management Accounting?
  2. Distinguish between Nature of Capital and Revenue items with certain examples and Journal entries.
  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 Financial Management? Explain its objectives.

[4]

  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 ratio analysis? Explain the following ratios: Current ratio, Liquid ratio, Operating Ratio and Operating Profit ratio, Net profit ratio, Return on investment.

[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. 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.

[6]

  1. Explain the nature and scope of Financial Accounting. What is the difference between Management Accounting and Financial Accounting?
  2. Define capitalization. Explain the two main principles of capitalization.
  3. Define financial management and write a note on the need of financial management.

[7]

  1. Define Financial Accounting. Explain the nature and scope of Financial Accounting. Differentiate between Financial Accounting and Management Accounting.
  2. From the given trial balance, prepare Trading and Profit & Loss Account and Balance Sheet for the year ended.
  3. Explain the nature and objectives of Financial Management. Explain various long-term sources of financing.

[8]

  1. Define Financial Accounting. Explain the nature and scope of Financial Accounting. Differentiate between Financial Accounting and Management Accounting.
  2. Calculate the following based on the provided information: Break-Even Point in units, Sales volume to earn a specified profit, and additional units required to increase the profit by a given amount.
  3. Explain the objectives and nature of Working Capital. State various factors influencing the composition of Working Capital.

[9]

  1. What are the fundamental concepts of accounting?
  2. Define intangible assets and give examples.
  3. What does GAAP stand for?

[10]

  1. Discuss the principles of Financial Accounting. Write the conventions used in Accounting.
  2. What do you mean by rectification of errors? Explain with examples.
  3. Explain the use and role of Bills of Exchange.

[11]

  1. How does Management Accounting differ from Financial Accounting?
  2. What are the objectives of financial analysis and interpretation?
  3. Describe the various kinds of Reports.

[12]

  1. What are the basic concepts of financial accounting? Explain their importance.
  2. Discuss the statement that a fund-flow statement is better than an income statement and distinguish between these documents.
  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. 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.
  2. Mention the necessary entries in the books of the buyer as well as the seller when goods are sold on the hire-purchase system.
  3. Show the Machinery Account and B's Account in the books of A based on given hire-purchase agreement.

[14]

  1. Define financial accounting and state its objectives.
  2. Explain rules of debit and credit.
  3. Differentiate between preference shares and equity shares.

[15]

  1. Explain briefly External Users of Accounting Information.
  2. Explain briefly Long-term sources of finance.
  3. Prepare Trading and Profit & Loss Account and Balance Sheet based on given trial balance and adjustments.

[16]

  1. Find Rahul's income for 2015-16 following the accrual basis of accounting.
  2. Differentiate between equity shares and preference shares.
  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. What do you understand by cost of debt?

[18]

  1. Explain the cost concept, revenue recognition concept, accounting period concept, conservation convention, and consistency convention.
  2. What do you understand by receivable management? Explain its importance and the factors affecting the size of receivables.
  3. Write notes on capital gearing, debentures, cost of capital, and objectives of cash management.

[19]

  1. Describe provision for doubtful debts.
  2. State the objectives of financial management.
  3. Discuss the application of computers in accounting.

[20]

  1. What is the relationship between Hire Purchase Price and Cash Price?
  2. Write a short note on Accounting Standards.
  3. What is Double Entry System? Discuss its features.

[21]

  1. Write the distinction between management accounting and financial accounting.
  2. What do you understand by budget?
  3. Calculate gross profit ratio from the given information.

[22]

  1. What are Conventions of Accounting?
  2. What is Nature and Scope of Accounting?
  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.

[23]

  1. Distinguish between Cost Accounting and Financial Accounting.
  2. Calculate the machine hour rate on the basis of the provided data.
  3. Prepare a statement of cost and calculate the price to yield a profit of 20% on selling price.

[24]

  1. Accounting is an Art and Science both.
  2. Prepare a Sales Book from transactions and post them into Ledger.
  3. Prepare Nominal Accounts from the given Transactions.

[25]

  1. Give the difference between single and double column cash-book.
  2. What do you mean by appropriate capital structure? Explain with reference to the cash flows analysis.
  3. From the given information, find out Sales, Closing Stock, Sundry Debtors, and Sundry Creditors.

[26]

  1. What are the factors affecting cost of capital?
  2. Discuss weighted average cost of capital.
  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. Explain the term 'point of indifference'.

[28]

  1. Distinguish Management Accounting from Financial Accounting.
  2. What is the use of cash book?
  3. Explain the Traditional theory of cost of capital and capital structure.

[29]

  1. Describe the meaning of Financial Accounting.
  2. What do you mean by Double Entry system of Accounting?
  3. Discuss the importance of financial statements.

[30]

  1. What are three methods of Journalising?
  2. What do you mean by GAAP?
  3. Discuss the application of computer in accounting double entry system.

[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. Distinguish between marginal cost and variable cost.

[32]

  1. Differentiate Financial Accounting and Cost Accounting.
  2. How do you calculate cost per unit?
  3. What do you mean by Economic Order Quantity?

[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. What is debenture? What are the various methods of redeeming the debentures? Describe their characteristics.
  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 mean by an Account?
  2. Show the Machinery Account for three years based on the given transactions and depreciation rate.
  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. What do you mean by trading, profit and loss and balance sheet?
  3. What is a trial balance? Describe the errors, which are not disclosed by trial balance.

[36]

  1. What are the different types of the Cash Book? How is each one of these balanced?
  2. What do you mean by Final Accounts? What is their necessity?
  3. Shares are issued at par, premium or discount. What do you understand by this? What accounting record is made in this connection?

[37]

  1. What rules of partnership are followed in the absence of Partnership Deed?
  2. Define Partnership and its characteristics. Also explain Partnership Deed.
  3. What is goodwill? Explain clearly the different methods of valuation of goodwill.

[38]

  1. What are the basic concepts of Financial Accounting? What are their limitations?
  2. What are objectives of a trial balance?
  3. Explain the accounting policy relating to stock valuation.

[39]

  1. How is Super profit calculated?
  2. PLtd. acquired 75% of shares of A Ltd. on 31st Dec 2019 when the P & L a/c was 6000(Cr). Later on A Ltd. purchased all the shares of B Ltd. on 31st Dec 2020, when the profit of B Ltd. was 4,800(Cr). Prepare the consolidated balance sheet.
  3. On the reconstruction of a company, the following terms were agreed upon: Make the Journal entries in the books of the company based on the above reconstruction.

[40]

  1. What is liquidator's final statement of account? How is it prepared? Explain with suitable example.
  2. The following information is given: (a) Average capital employed 1,00,000, (b) Present value of the annuity of 1 for 5 years at 10% is 3.78, (c) Normal rate of profit is 10%, (d) Net Profit for five years are I year 15,000; II year 16,000; III year 17,000; IV year 18,000 and V year 20,000. Profits included non-recurring profit on an average basis of 1,500, out of which 300 had the recurring tendency. Remuneration of proprietor is 800 p.a. which is not charged in profit and loss account. Find out goodwill: (a) as per 5 year's purchase of super profit, (b) as per annuity method, (c) as per capitalization of profit method.
  3. X Company having a capital of 5,000 equity shares of 10 of each, went into voluntary liquidation on 31st December, 2019. 40,000 was realized from its assets excluding amount realized by sale of securities held by the secured creditors. The following was the position: Secured creditors (assets realized 10,000), Unsecured creditors (including pref. creditors of 4,000), Debentures having a floating charge on the assets of the company, Liquidation expenses, Liquidator's Remuneration 3% on the assets realized and 2% on the amount paid to unsecured creditors. Prepare final statement of Account of liquidator.

[41]

  1. Calculate the cost of sales adjustment (COSA) from the following data: Opening stock Rs. 20,000 Index No. 100 (Opening) Purchases Rs. 1,60,000 Index No. 110 (Average) Closing stock Rs. 30,000 Index No. 120 (Closing).
  2. 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.
  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 is Trial Balance? Describe the methods of Preparing a Trial Balance.
  3. Define 'Cost of Capital'. How will you determine the cost of capital from different sources?

[43]

  1. What are the major entries of a balance sheet? Write the role of ledger, journal, and posting in preparation of a balance sheet.
  2. What are the sources of acquiring funds? Highlight the role and cost associated with each.
  3. Write notes on: Trial Balance, Ratio Analysis.

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