Marwadi Education Foundations Group of Institutions

Faculty of Management MBA 2012 Semester I Accounting for Managers GTU THEORY QUESTIONS for 7 marks
[Questions in RED fonts are excluded from new syllabus] June 2012 NEW 1. Rajan is the accountant of a small company making two or three different types of household tools. He systematically and accurately collects and records all the transactions of the company, and prepares statements, so that management knows the annual profit and the financial position. What more can a good accountant does? ponders Rajan. From your understanding of the scope of accounting, advise him in what ways he might be of service to the management. 2. Explain in detail the applicability of Accounting Standards with special reference to various levels of categories of enterprises. 3. Explain the meaning of investments, its scope and how is the cost of investments determined in different situations as per AS 13? 4. Urvashi Camera Limited (UCL) enters into an agreement with Trident Limited, which runs the West Side chain of family stores, to place cameras in West Side Stores. As per the agreement West Side receives the cameras on consignment basis and makes best efforts to sell the cameras at the best price depending upon the competition and new offerings by competitors. UCL maintains title to cameras until West Side sells them. When West Side sells the cameras, it remits the selling price minus a fee to UCL. UCL takes back any damaged or defective cameras. Required: Explain when UCL should recognise the revenue from the sale of cameras. 5. Define IFRS. What are the advantages of converting to IFRS? 6. Explain meaning and important features of Inflation Accounting and briefly explain the effects of Inflation on Financial Statements. 7. What is Balance Sheet? Draw a pro forma in vertical share of it. Explain its significance. How does it differ from a Trial Balance? 8. Explain the impact of errors on Trial Balance by giving simple suitable examples errors disclosed and errors does not disclosed by Trial Balance. 9. Explain the important provision of AS 10. 10. Financial ratio analysis by itself does not provide an understanding of the operation of the firm. Financial analysis should be integrated with industry analysis, analysis of the economy, and analysis of the firms strategy. Analyse the statement.

December 2011 NEW 1. Discuss Income Recognition and Accrual of Income (AS-9) 2. What do you meant by the term depreciation? What are its causes? Why do firms provide depreciation? 3. Show format of balance sheet in horizontal form for a company. 4. Explain the meaning and objectives of financial statement analysis. 5. Who are the users of accounting information, and why do the users need accounting information? 6. Briefly explain GAAP. 7. Briefly explain IFRS. June 2012 Old 1. Financial Statements are the most important part of financial reporting. Discuss the above statement giving the objectives of financial statement. 2. Discuss the WDV and SLM methods of depreciation. Also mention the major provisions of the Income Tax Act regarding the depreciation. 3. As per the revised AS 2 issued by ICAI, FIFO and WAC methods are recognized methods for inventory valuation. Explain FIFO and WAC methods of inventory valuation. 4. Briefly explain the meaning and significance of cash flow statement and also the benefits to the users of Cash Flow Statement. 5. Auditors report and Directors Report are mandated by Companies Act Discuss the significance and implication of Auditors Report. 6. It is prudent to confirm the findings of Horizontal Analysis, by using Trend analysis. Do you agree with above statement? Why? 7. Give the major ratios which help in analyzing the profitability and liquidity position of a firm. 8. Define Human Resource Accounting giving its objectives and advantages. 9. Explain Responsibility Accounting giving the various types of responsibility centers. 10. Write a short note on Relevance of Environmental Accounting. 11. Due to globalization of economies, it is imperative to have uniform global financial reporting Discuss giving the significance of IFRS.

December 2011 OLD 1. What is Accounting Equation? Describe all the possible changes in it, which keeps the equation true, with hypothetical transactions. 2. Explain following accounting concepts with clear examples: Going Concern Concept Money Measurement Concept 3. What is Impairment of Assets? Explain with reference to Accounting Standard 28. 4. Explain in detail the utility of Corporate Cash Flow Statement. 5. Explain Clause 49 of Listing Agreement in detail. 6. What is Auditors Report? Write a detailed note on Content of Auditors Report. 7. What are the provisions of Companys Act regarding accounts of a company?

8. Explain Ratio Analysis as a tool of financial statement analysis and also explain different types of ratios. 9. What is Du Pont Analysis? Explain in detail with hypothetical example. 10. Explain the meaning and utility of Horizontal and Vertical Analysis of Financial Statement. 11. What is IFRS? Describe in detail latest developments of IFRS. 12. What is the utility of Environmental Accounting? 13. Explain Responsibility Accounting in Detail. 14. Explain Human Resource Accounting in Detail. July 2011 OLD 1. Who are the users of accounting information, and why do the users need accounting information? How this information helpful to the users? 2. What do you mean by inventory valuation? State different methods of inventory valuation. Also discuss the impact of each valuation methods on COGS and Profit in inflated prices and deflated prices. 3. Why do we need global standardization of financial reporting? Is it feasible? Is it required? Why or Why not? 4. Explain the significance of Ratio Analysis. 5. What do you understand by Trend Analysis? Explain with hypothetical example. 6. What are the merits of introducing environmental accounting and reporting the results obtained? 7. Explain the role of Human Resource Accounting. 8. Briefly explain the valuation of Lease. 9. Briefly explain GAAP. January 2011 OLD 1. Explain the following concepts: The Entity Concept Accrual Concept Realisation Concept 2. With reference to the following items, distinguish accounting treatment under IAS (Now IFRS), Indian GAAP and US GAAP: Cash and Cash Equivalents Depreciation Miscellaneous Expenditure 3. Quality of earnings suffers from certain limitations of financial statements Critically examine. 4. Discuss in detail about salient aspects of AS 1 dealing with disclosure of accounting policies. Give a suitable example. 5. Write short notes on: Miscellaneous Expenditure and Debit Balance of P & L Account Shareholders Funds Capital Reserves

6. Explain in detail strengths of US GAAP and key benefits to companies complying with US GAAP. Can you say US GAAP is popular among Indian Industry? 7. Define term Related Party and explain in brief about Related Party Disclosures under AS 18.

April 2010 OLD 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Describe briefly various steps of accounting process. Describe briefly various concepts of accounting. What are intangible assets? How is goodwill valued? Give abridged format of a corporate balance sheet. Also give its statement form. What are the contents of a corporate governance report? Write a brief note on IFRS. Prepare an accounting policy statement. Describe the Provisions of the Companies Act, 1956 regarding accounts of a company. What are the various tools of financial statement analysis? What is the managerial need of a Cash Flow Statement? How is it prepared? How is Cash Flow Statement interpreted? Explain using imaginary data. Explain LIFO and FIFO methods of inventory valuation with comparison. Give suitable illustration. 13. Explain liquidity, solvency and profitability ratios. 14. Explain Responsibility Accounting. 15. Describe Inflation Accounting.

January 2010 OLD 1. How do GAAP present an accounting principles present an ethical issue in financial accounting? 2. What do you mean by the term depreciation? What are its causes? Why do firms provide depreciation? 3. What do you understand by common size statement? What is its purpose? Explain with suitable examples. 4. Describe the progress made by India so far in the field of human resource accounting. 5. Define Inflation Accounting and explain the provisions for the same in GAAP. 6. Explain the significance of Environmental Accounting in the Indian Context. 7. Explain Foreign Exchange Accounting process in detail. 8. Discuss the utility and significance of financial statements to various parties interested in business concern. 9. Explain the various classifications of ratios. 10. Explain the limitations of Financial Accounting. 11. Explain the meaning and objectives of Financial Statement Analysis.