All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
management accounting

Questions and Answers of Management Accounting

“Revenues are positive shareholders equity accounts while expenses are negative accounts in this regard.” Explain.
What is P&L Appropriation Account? What purpose does it serve? Do you require such an account in all type of firms? Draw such an account with imaginary figures.
“Capital expenditures and deferred revenue expenditures need to be apportioned to determine true income.” Explain. Give 3 examples of each.
“Extraordinary items warrant exclusion to judge true operating performance of a business enterprise.”Elaborate. Give 3 examples each of abnormal losses and of abnormal gains.
Write short notes on the following:(i) Account(ii) Rules of debit and credit(iii) Cost of goods sold(iv) Errors of commission
State the rules of debit and credit as applied to (a) expense accounts, (b) asset accounts(c) capital account.
Indicate whether the following accounts would normally possess a debit or credit balance:(a) Salaries, (b) Debtors, (c) Creditors, (d) Plant and machinery, (e) General reserve, (f) Patents,(g)
Arrange the following information in the sequence of accounting cycle:(a) Posting to the ledger,(b) Trial balance is prepared,(c) Business transaction takes place,(d) Income statement is prepared,(e)
Indicate whether the following statements are true or false:(a) All debit entries are posted on the left side of accounts and are indicative of decrease in the account balances.(b) All credit entries
Fill in the following blanks:(i) Cost of goods sold = Opening stock of finished goods (+) __________ (–) Closing stock of finished goods in the case of trading firms.(ii) Gross profit = Sales
Journalise the following transactions of a hypothetical firm during the period January 1 to January 31. January 11 January 2 January 3 January 4 January 6 January 6 January 6 January 10 January 12
Journalise the following transactions. Post them into ledger and prepare trial balance. 2013 April 1 April 2 April 3 April 4 April 10 April 13 April 15 April 18 April 19 April 25 April 28 Mohan
Enter the following transactions in cash book and bank book with discount columns. 2013 May 1 May 4 May 5 May 6 May 10 May 11 May 13 May 14 May 14 May 14 May 16 May 17 May 18 May 19 May 22 May 24 May
Mittal \& Co Pvt Ltd. ('MCPL'), registered on April 5, 2013 as a private limited company, is primarily engaged in fabrication and sale of steel products. For the transactions undertaken during the
From the following ledger balances of Mr. Dinesh, prepare a trading account, P\&L account for the current year ended 31st March 2013 and a balance sheet as on that day, after making the necessary
From the following trial balance, prepare manufacturing account, trading account, P&L A/c for the year ending March 2013 and a balance sheet as on that date of small manufacturing firm owned by
From the following balances extracted from the books of Small Toy Limited as at March 31, 2013(after preparation of the profit and loss account), prepare the balance sheet as at the above
Show the presentation of the following information under the appropriate heads of the balance sheet of a public limited company.(i) General reserve (beginning) stood at ₹30,00,000, profit and loss
The following is the Trial balance of Amit Ltd., as at March 31, 2013:Prepare profit and loss account for the year ended 31st March, 2013 and balance sheet as at that date after considering the
State whether the following statements are true or false.(a) A company must prepare its profit and loss account in the format as prescribed by the Companies Act.(b) It is statutory for the company to
Fill in the blanks:(a) SEBI has mandated corporate governance in the listing requirement in clause____________ of the listing agreement.(b) Apart from mandatory requirements listed in clause 49, the
State the particular items to be disclosed in a company’s balance sheet as per Schedule VI of the Companies Act 1956 in respect of (a) fixed assets and (b) share capital.Schedule VI of the
Name four contingent liabilities which may be shown as a footnote to balance sheet of a company.
Draw-up pro-forma balance sheet in horizontal form as per the requirements of Schedule VI of the Companies Act 1956. Schedule VI of the Companies Act 1956 From the following trial balance of Prakash
Explain the provisions relating to maintenance of books of account and presentation of financial statements of a company.
Write short notes on the following:(a) Segment reporting (b) Interim financial reporting (c) Related party disclosure.
Enumerate, the mandatory and voluntary contents of Clause 49 of the listing agreement regarding corporate governance.
What is the objective of disclosing information about discontinued operations? Is abandonment of particular product in view of continuous decrease in market demand and diverting the resource to new
Explain the reporting and recognition requirement in the case of jointly controlled entities in(a) separate financial statement and (b) consolidated financial statements. Your answer is to be based
The following balances have been extracted from the books of X Ltd as on March 31, 2013:Additional Information:(i) Closing stock of finished goods at cost is ₹60,00,000.(ii) The original cost of
Given below is the Trial Balance (rounded off to rupees thousands) of Supreme Chemical limited as at the end of their financial year 2012–13 and additional information to be considered while
Answer the following:(a) A company sold building for cash at ₹100 lakh. The profit and loss account has shown ₹40 lakh profit on sale of building. How will you report it in cash flow statement
Compute cash generated from operations during the year 2012-13, from the following data: Particulars Sundry debtors Sundry creditors Outstanding expenses Outstanding income Stock in trade Prepaid
From the following summary cash account of Y Ltd., prepare cash flow statement for the current year ended March 31 in accordance with AS-3 using the direct method. The company does not have any cash
Charatlal, the president and majority shareholder, was a superb operating executive. He was an imaginative, aggressive marketing man and an ingenious, creative production man. But he had little
Prepare a statement from the following financial information of ABC company, to explain the causes of increase in cash despite the firm incurring losses. Income statement Sales Dividends from
Nandini Ltd. provides the following data:Comparative trial balanceNotes: (a) The depreciation charged for the year was ₹60 lakh.(b) The book value of the building and equipment disposed off was
The manager of a small plastic manufacturing company has reviewed the annual financial statements for the current year and is unable to determine from a reading of the balance sheet the reasons for
The following are the summarised balance sheets of Sound Ltd. as on March 31 for the two consecutive years 1 and 2:Additional information (` in thousand):(1) 15% Debentures of ₹300 was redeemed
The following are the summarised balance sheets of Hypothetical Ltd. as at March 31 for the two consecutive years 1 and 2. Prepare CFS as per AS-3.Additional information (₹in thousand)(i) An amount
Indicate whether the following statements are True or False.(i) Cash from business operations can be determined from income statement.(ii) Working capital from business operations can be determined
Fill in the following blanks with right answer:(i) Cash flow statement (based on AS-3) indicates change in_______________ (cash/bank/cash and cash-equivalents).(ii) Decrease in creditors
From the following financial information, select non-cash investing, financing and operating activities:Redemption of debentures by converting into equity shares.Buy back of equity shares.Purchase of
“The analysis of cash flow statement in any organisation can be very useful to the management.”Elucidate the statement.
The cash flow statement is as useful to shareholders and lenders as to management. Explain.
Name three activities in which cash flows are classified as per Accounting Standard 3. Also give three examples of transactions covered in these activities.
Describe in brief the procedure of determining cash flow from operating activities as per indirect method of AS-3. Take an appropriate example to illustrate your answer.
Explain with example the two methods of determining cash provided by operating activities.
Explain why decrease in current liabilities decrease cash and decrease in current assets increase cash.
“Depreciation is a non-cash expense. Still it is an integral part of cash flows”. Explain.
Write short notes on the following(i) Cash-equivalents(ii) Extra-ordinary items(iii) Treatment of interest and dividends received in cash flow statement (based on AS-3).(iv) Major non-cash items.
The directors of Precision Tools Ltd. are worried at the deteriorating financial position of the company. The company has utilised full overdraft facility from the bank and is still not able to pay
Given the following data (Rs thousands), prepare a cash flow statement based on AS-3. Liabilities Equity share capital Reserves Total shareholder's equity Debentures Current liabilities Bills payable
From the information contained in income statement and balance sheet of ‘A’ Ltd., prepare cash flow statement: Net sales Less: Cash cost of sales Depreciation Salaries and wages Income statement
The Balance Sheet of Royal Limited as on 31st March, 2012 and 31st March, 2013 are given below:Additional Informations:(i) During the year 2012–2013, Fixed Assets costing ₹2,40,000 (accumulated
The Avon Ltd has a capital of ₹10,00,000; its turnover is 3 times the capital and the net profit margin on sales is 6 per cent. What is the return on investment?
B Raj Ltd sells goods on cash as well as credit. The following particulars are extracted from their books of accounts for the current year-end. Particulars Total gross sales Cash sales (included in
The following are the ratios relating to the activities of National Traders Ltd:Gross profit for the current year ended December 31 amounts to ₹4,00,000. Closing stock of the year is ₹10,000
The capital of E. Ltd. is as follows:Additional information: Profit (after tax at 35 per cent), ₹2,70,000; Depreciation, ₹60,000; Equity dividend paid, 20 per cent; Market price of equity shares,
Z Ltd purchased a retail store and commenced business on April 1. From the following information, you are required to prepare in as much details as possible, a trading and profit and loss account for
Using the following information, complete the balance sheet given below: Total debt to net worth: 0.5 to 1. Turnover of total assets (based on year-end sales figures): 2. Gross profit: 30 per cent
As the manager of a financial services company, you have received a proposal seeking a term loan of ₹300 lakh, from a firm planning an investment in fixed assets of ₹500 lakh in a new project.
The information below is taken from the records of two companies in the same industry. The companies are X Ltd and Y Ltd; and the data is as follows:Answer each of the following questions by making a
The following information was taken from the financial statements of XYZ Ltd (amount in thousand of rupees)Calculate those ratios which indicate the efficient use of assets and discuss potential
From the ratios and other data set forth below for the Auto Accessories Ltd, indicate your interpretation of the company’s financial condition: Particulars Current ratio (per cent) Acid-test ratio
Below is given the balance sheet of Best Ltd, as on March 31, of the current year:The following additional information is available:(1) Fixed assets costing ₹10,00,000 to be installed on April 1,
You have been supplied data for the Supreme Plastic Company Ltd, and its industry averages:1. Determine the indicated ratios for the Supreme Plastic Company.2. Indicate the company’s strengths and
From the following particulars, prepare the balance sheet of Shri Mohan Ram and Co. Ltd as at March 31, current year. Current ratio, 2 Working capital, *4,00,000 Capital block to current asset, 3:2
As the manager of a financial services company, you have received a proposal seeking a term loan of ₹300 lakh, from a firm planning an investment in fixed assets of ₹500 lakh in a new project.
The following items appear in the accounts of XYZ Ltd as at March 31, current year:Note:The values of all fixed assets reflect current price levels after provision of depreciation.You are required to
Towards the end of previous year, the directors of A Ltd decided to expand the business. The annual accounts of the company for the previous year and current year are summarised as given:You are
Hypothetical Industries Ltd (HIL) has submitted the following projections. (₹lakh) You are required to determine yearly debt service coverage ratio (DSCR) and the average DSCR and comment.The net
The financial statement of Excel AMP Graphics Limited are as under: Balance sheet as at 31st March, 2013 Sources of funds: Shareholders' funds Share capital Reserves and surplus 2013 1,121 8,950
The financial statistics pertaining to profitability of Asian Paints (India) Limited for years 1–6 are tabulated below: Particulars EBIT Interest EBT Tax provisions EAT Sales Total assets Average
Indicate whether the following statements are true or false:(i) Current ratio and acid-test ratio of a business firm are virtually the same; this implies that the firm has low investment in
Fill in the blanks with the correct answer (out of the choices provided).(i) An analyst applied the DuPont System to the following data of a company: (a) equity turnover 4.2, (b) net profit margin
There are four groups of financial ratios; liquidity, leverage, activity, and profitability. Financial analysis is conducted by four types of analysts: management, equity investors, long-term
What is the importance of ratio analysis? Briefly discuss the importance of the following accounting ratios:(a) Liquidity ratio, (b) Debt-equity ratio, (c) Stock-turnover rate, and (d) Ratio of
What procedure would you adopt to study the liquidity of a business firm?
How would you analyse the financial position of a company from the point of view of(a) an investor, (b) a creditor, and (c) a financial executive of the company?
Discuss the importance of ratio analysis for interfirm and intrafirm comparisons, including circumstances responsible for its limitations. If any.
Distinguish between percentage analysis and ratio analysis relating to the interpretation of financial statements. What is the value of these two types of analysis?
How does the acid-test ratio differ from the current ratio? How are they similar? What is the usefulness of the defensive interval ratio?
What is the relationship of the assets turnover rate to the rate of return on total assets?
Two companies have the same amount of working capital. The current debt paying ability of one company is much weaker than that of the other. Explain how this could occur.
(a) Discuss some inherent limitations of single-year financial statements for purposes of analysis and interpretation.(b) To what extent are these limitations overcome by the use of comparative
What is indicated when the average age of accounts receivable for a firm is 45 days, but credit terms require customers to pay accounts within 30 days?
What are the limitations of financial ratios as a technique for appraising the financial position of a company?
‘A uniform system of accounts, including identical forms for balance sheets and income statements is a prerequisite of inter firm comparisons.’ Elucidate.
You have been furnished with the financial information of Aditya Mills Ltd. for the current year.Sundry debtors and stock at the beginning of the year were ₹3,00,000 and ₹4,00,000
The XYZ Ltd’s financial statement contains the following information: From the above, appraise the financial position of the company from the points of view of (a) liquidity, (b) solvency, (c)
A partial list of trend and common-size percentage for ABC Ltd. for years 1 and 2 is given below:(a) Determine the missing trend and common-size percentages.(b) Compute the net income for year 2.
You have been supplied data for Royal Plastic Ltd. and its industry averages.(a) Determine the indicated ratios for the Royal Plastic Ltd.(b) Indicate the company’s strengths and weaknesses in
Presented below is the financial information of two companies—A and B, belonging to the same industry:Assume you are loan officer of a bank and both the companies have requested a loan of equal
Below are selected ratios for two companies in the same industry, along with industry average:Can we say on the basis of above ratios and information that company B is better than company A because
Below are selected ratios for three years ending March 31 for the Worst Company Ltd:Outline possible explanations for the drastic changes in some of the ratios during these years. Ratios Current
From the following details, prepare a statement of proprietory funds with as many details as possible:The gross profit was ₹60,000; Reserves and surplus amounted to ₹20,000; Closing stock was
From the following information of a textile company complete the proforma balance sheet if its sales are ₹32,00,000. Sales to net worth (times) Current debt to net worth (ratio) Total debt to net
The following data are extracted from the published accounts of two companies, ABC Ltd. and XYZ Ltd., in an industry.Prepare a statement of comparative ratios showing liquidity, profitability,
Hypothetical Industries Ltd. (HIL) has submitted the following projections (₹lakh). You are required to determine yearly debt service coverage ratio (DSCR) and the average DSCR and comment.The net

Showing 3300 - 3400 of 3858

First
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved