CS-54 : FINANCE & ACCOUNTING ON COMPUTERS
| Time : 2 hours | Max marks: 75 | ||||||||||||||||
| 1. (a) Explain the following terms in about 10 lines each : | 10marks. | ||||||||||||||||
| i. Social Responsibility Accounting ii. Accrual Concept iii. Operating Profit iv. Opportunity Cost v. Margin of safety |
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| (b) Discuss the scope of modern accounting. | 10mrks. | ||||||||||||||||
| (c) What factors affect the working capital requirements ? Explain briefly. | 10mrks. | ||||||||||||||||
| 2. (a) Anil invested Rs 40,000 of his own in a florist shop
and borrowed another Rs. 20,000 from a bank for business use. At the end of
first year of operations, he found Rs. 72,000 in his shop's bank account. He
owed his suppliers Rs. 12,000 and had not repaid the bank loan. He had no
other business assets other than cash. During the year he paid himself a
salary of Rs. 24,000. i. What conclusions would you draw from his first year's operations? ii. For what decisions could this information be used ? |
7M. | ||||||||||||||||
| 2 (b) From the following data : | |||||||||||||||||
Calculate : |
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| i. Break-even point expressed in rupee sales | |||||||||||||||||
| ii. Number of units that must be sold to earn a profit of Rs. 2,00,000 per year | 8marks | ||||||||||||||||
| 3. Distinguish between Direct Material Price Variance and Direct Material Usage Variance. What causes could lead to material usage variances ? | 15marks | ||||||||||||||||
| 4. What do you mean by Fixed Assets ? Are all fixed assets depreciable ? | 15m. | ||||||||||||||||
| 5. What factors could a company in general consider before it takes a decision on dividends? | 15m | ||||||||||||||||
| 6. (a) The margin of profit of Apex Industries is 10 percent, its total assets turnover ratio is 2 times, and its equity/total assets ratio is 40 percent. What would be the company's rate of return on equity ? | 8 marks | ||||||||||||||||
| (b) If the net profit margin of the above firm is 25 percent, and the ROI is 10 percent, what would be the total assets turnover ratio? | 7m. | ||||||||||||||||