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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. 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. 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 ratio analysis? Explain the following ratios: Current ratio, Liquid ratio, Operating Ratio and Operating Profit ratio, Net profit ratio, Return on investment.
  3. Distinguish between Stock and Inventory and explain with an example Economic Order Quantity.

[4]

  1. What is Financial Accounting? Describe its nature and scope.
  2. How is the schedule of changes in working capital prepared? Explain.
  3. Describe the factors which influence the composition of working capital.

[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 financial management and write a note on the need of financial 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. How would you study the changes in Working Capital in a concern? Why is such a study necessary?

[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. 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. Journalise the given transactions in the book of Shri Kishan Timber Merchant providing suitable narrations.
  3. 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.

[9]

  1. Who invented the double-entry system of book-keeping?
  2. Who issues Indian Accounting Standards?
  3. What are the main objectives of working capital management?

[10]

  1. Discuss the principles of Financial Accounting. Write the conventions used in Accounting.
  2. Explain the use and role of Bills of Exchange.
  3. Depreciation is a non-cash item. Explain.

[11]

  1. How does Management Accounting differ from Financial Accounting?
  2. Differentiate between cash flow and cash budget.
  3. Explain the characteristics of an ideal financial statement.

[12]

  1. What are the basic concepts of financial accounting? Explain their importance.
  2. What is Break-even Analysis? Discuss its assumptions and uses.
  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. Explain the necessity of preparing Final Accounts.
  2. What is Voyage Account? Why is it prepared? How is profit ascertained in case of Incomplete Voyage?
  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. 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 Components of working capital.
  3. Prepare Trading and Profit & Loss Account and Balance Sheet based on given trial balance and adjustments.

[16]

  1. Explain the importance of cash flow statement to management.
  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. What do you understand by cost of debt?
  3. Write short notes on Preference shares, Equity shares, Debentures, and Ploughing back of profit.

[18]

  1. Analyse the given transactions and state the nature of accounts involved, specifying which account will be debited and credited according to the traditional approach.
  2. Explain the purpose of accounting information and revenue nature items.
  3. Explain the application of computers in accounting.

[19]

  1. Differentiate between owned capital and borrowed capital.
  2. Describe the accounting period concept.
  3. Analyse transactions and determine the nature of accounts, specifying which account will be debited and which will be credited according to the traditional approach.

[20]

  1. What is the relationship between Hire Purchase Price and Cash Price?
  2. Distinguish between Fixed Assets and Current Assets.
  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. What is standard costing? Explain its main objectives.

[22]

  1. What are Conventions of Accounting?
  2. What are Rules of Debit and Credit?
  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. What do you mean by Cost?
  3. What do you mean by Incentive wage payment system? Discuss any two methods of it.

[24]

  1. Structure of Book Keeping and Accounting.
  2. What is difference between Trade Discount and Cash Discount?
  3. What are Preferential liabilities according to Presidency towns Insolvency Act?

[25]

  1. What are the objectives of preparing trial balance?
  2. Draw a typical organization chart highlighting the finance function of a company and explain the functions of finance manager.
  3. From the given information, find out Sales, Closing Stock, Sundry Debtors, and Sundry Creditors.

[26]

  1. What is cost of capital? Explain its relevance in financial decisions.
  2. What is the sound management policy for Accounts Receivable?
  3. Describe three different approaches that can be used to pass structures as function arguments.

[27]

  1. What is 'going concern concept' of Accounting?
  2. Draw a 'balance sheet' with imaginary figures.
  3. How the working capital is calculated?

[28]

  1. Distinguish Management Accounting from Financial Accounting.
  2. Explain the different rules for journalising the transactions with appropriate illustrations.
  3. Find out sales, closing stock, and sundry debtors based on the given financial ratios of Rainy Ltd.

[29]

  1. Describe the meaning of Financial Accounting.
  2. Discuss the importance of financial statements.
  3. Efficient cash Management will aim at maximising the cash inflows and slowing cash outflows. Discuss.

[30]

  1. What are three methods of Journalising?
  2. What do you mean by GAAP?
  3. Explain the technique of preparing a cash flow statement with imaginary figures.

[31]

  1. Define Cost Accounting. Discuss its significance to the management. How does it differ from Financial Accounting?
  2. Name the different methods of absorption of factory overheads.
  3. Distinguish between a cost sheet and statement of cost. How a cost sheet helps in finding out tender price? Give a specimen of cost sheet.

[32]

  1. Differentiate Financial Accounting and Cost Accounting.
  2. What do you mean by Economic Order Quantity?
  3. Write any two objects of Management Accounting.

[33]

  1. Pass Journal entries in the books of Hari Shankar from the given transactions.
  2. What is debenture? What are the various methods of redeeming the debentures? Describe their characteristics.
  3. A Ltd. took loans from a Bank and deposited debentures as collateral security. Pass the necessary Journal entries and prepare Balance Sheet in the books of A Ltd.

[34]

  1. Why is Bank Reconciliation Statement prepared?
  2. What is a Suspense Account?
  3. What is Sinking Fund Method of depreciation?

[35]

  1. What is bank reconciliation statement?
  2. What is meant by rectification of errors?
  3. What is a trial balance? Describe the errors, which are not disclosed by trial balance.

[36]

  1. Shares are issued at par, premium or discount. What do you understand by this? What accounting record is made in this connection?
  2. Ankit Ltd. issued 8,000 equity shares of Rs. 10 each, payable as Re. 1 on application, Rs. 3 on allotment, Rs. 2 on first call and the balance on final call. But Ranu, who holds 100 equity shares, did not pay first and final call amount on these shares and Subhash, who holds 60 shares, did not pay final call amount. All other amounts were duly received. Pass the necessary Journal entries in the books of the company.
  3. ACC Ltd. issued 5,000, 8% debentures of Rs. 100 each at par. Company deducts income-tax from the interest of these debentures at source. Interest is paid on these debentures half-yearly on 30th June and 31st December. Amount of income-tax deducted half-yearly is Rs. 800. Pass the necessary journal entries for interest and income-tax in the books of the company.

[37]

  1. From the following information, prepare a Bank Reconciliation statement as on 31st December 2011: Balance as per Cash Book Rs. 2,700; Cheques drawn but not presented for payment Rs. 1,200; Cheques deposited but not yet collected Rs. 1,700; Bank charges Rs. 80; Cheque issued to a creditor for Rs. 800 was by mistake entered in the cash column of the Cash Book. The same has not been presented for payment till today.
  2. Define Partnership and its characteristics. Also explain Partnership Deed.
  3. Differentiate between: Outstanding Expenses and Prepaid Expenses; Interest on Capital and Interest on Drawings; Accrued and Unaccrued Income.

[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. 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. Jai Ltd. went into Liquidation on 31st December 2021. At that date following was the position: Prepare Liquidator's final statement of Account.

[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. What do you understand by super profit method of valuation of goodwill? What are the different methods of calculating goodwill based on super profit?
  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 are the various models of valuing intangible assets? Discuss each of them briefly.
  2. What is corporate financial reporting? What are its objectives?
  3. What do you mean by goodwill? Discuss in brief the various methods of valuation of goodwill.

[42]

  1. Define Financial Accounting. What is the difference between Financial Accounting and Management Accounting?
  2. Define 'Cost of Capital'. How will you determine the cost of capital from different sources?
  3. Write short notes on the following: (i) Current Assets (ii) Current Liabilities (iii) Liquid Ratio.

[43]

  1. Suggest an efficient way to prepare cash flow statements.
  2. How does break-even analysis help in evaluating the relationship among cost, price, and profitability? Explain with a diagram.
  3. Write notes on: Trial Balance, Ratio Analysis.

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