Mba-Sem I (New)

RASHTRASANT TUKADOJI MAHARAJ NAGPUR UNIVERSITY,
NAGPUR
SUMMER ONLINE EXAMINATION 2020
J.M.Patel Arts,Commerce & Science College, Bhandara
Department of Management Science & Research
MBA- SEM I (NEW)

SUBJECT : FINANCIAL REPORTING, STATEMENTS AND ANALYSIS
Time : 45 Min Max Marks :80

Note : 1. All questions are compulsory.
2. Each question carry Two marks each
Q.1 Which accounting standard is applicable for valuation of inventories ?

A. AS-1
B. AS-2
C. AS-3
D. AS-4
Q.2 How many standards are issued by ICAI which are mandatory ?
A. 28
B. 32
C. 10
D. Non of the above
Q.3 AS-8 on Accounting Research & Development..
A. is replaced by AS-26
B. is applicable only to listed companies
C. is mandatory for research institute
D. is still in use
Q.4 Match the following.
a) AS 26 i) Impairment of Asset
b) AS 10 ii) Discounting Operation
c) AS 28 iii) Intangible Asset
d) AS 24 iv) Accounting for Fixed Assets
A. a-iii b-iv c-ii d-i
B. a-ii b-iv c-i d-ii
C. a-ii b-iv c-iii d-i
D. a-iii b-iv c-I d-ii
Q.5 Accounting standards in India are issued by..
A. Central Government
B. State Government
C. ICAI
D. RBI
Q.6 All of the following are limitations of Accounting standards except..
A. The choice between different alternative accounting treatment is difficult.
B. There may be trend towards rigidity
C. Accounting standards cannot override the statute.
D. All of the above
Q.7 It is essential to standardize the accounting principles and policies in order to
ensure except.
A. Transparency
B. Consistency
C. Comparability
D. Taxability
Q.8 Accounting standards refers to specific accounting.
A. Principles
B. Methods of applying those principles
C. Both A & B
D. Non of these
Q.9 Accounting standards ________________the statue.
Ans : Can not over ride
Q.10 Which report gives a review on the profitability of a business.

A. Statement of changes in equity
B. Cash Flow Statement
C. Balance Sheet
D. Income Statement
Q.11 When assets are subtracted from liabilities it will equal to_________
Ans – Capital
Q.12 Current assets are also known as…

A. Cash
B. Assets
C. Invested capital
D. Working capital
Q.13 Cash Receipt received from the sales fixed assets are registered under the head of
_____________
Ans – Investing activities
Q.14 If Gross profit is Rs 5,000 and Net profit is 25% of the Gross profit , the expenses
must be ________
Ans – 3750
Q.15 A company has , by the end of its financial period, paid out more taxes than it has to
pay . How should this be shown in the Balance Sheet ?
A. As an accrual Revenue
B. An prepaid within Current assets.
C. As a creditor due within one year.
D. As a creditor due after more than one year.
Q.16 Which of the following is true about financial statement ?

i) Financial statement gives a summary of accounts.
ii) Financial statements can be stated as recorded facts.
A. Only i
B. Only ii
C. Both i & ii
D. Non of these
Q.17 If a machine whose original cost is Rs 40,000 having accumulated depreciation Rs

12,000, were sold for Rs 34,000, then cash flow from investing activity is Rs________
Ans – 34,000
Q.18 If 6% Preference share capital Rs 2,00,000 were redeemed at a premium of 5%, while
preparing Cash Flow Statement it effect on cash flow will be cash used from financing
activities Rs_____________
Ans – 2,10,000
Q.19 Mention the net amount of sources or Use of cash when Fixed asset having book
value of Rs 15,000 is sold at a loss of Rs 5,000
A. Use Rs 5,000
B. Source Rs 10,000
C. Use Rs 15,000
D. Source Rs 15,000
Q.20 How will you classify deposits by customers in Axis Bank?
A. Cash flow from operating activities
B. Cash flow from investing activities
C. Cash flow from financing activities
D. No cash flow
Q.21 As per Accounting standards-3 , Cash flow is classified into-

A. Operating activities and investing activities
B. Investing activities and financing activities
C. Operating activities and financing activities
D. Operating activities , financing activities and investing activities
Q.22 The objectives of Cash Flow Statement are-

i) Analysis of cash position
ii) short term cash planning
iii) Evaluation of liquidity
iv) Comparison of operating performance
A. Both i and ii
B. Both i and iii
C. Both ii and iv
D. All i,ii,iii & iv
Q.23 Which of the following statement are false .

i) Cash flow statement is helpful in formation of policies.
ii) Cash flow statement is useful for external analysis
iii) Cash flow is helpful in estimating future cash flow
A. Both i & ii
B. Both i & iii
C. Both ii & iii
D. Non of the above
Q.24 While calculating operating profit which will be added to net profit ?
A. Profit on Sales of Assets
B. Increase in General Reserve
C. Interest received
D. Refund of tax
Q.25 Given the following information for a business-

Net Profit Margin -10% ; Equity multiplier- 2.50; Return on equity-16.67%
Using the Du-Pont analysis what is the Asset Turnover ?
A. 0.84
B. 0.60
C. 0.67
D. 0.80
Q.26 What is the missing item in this formula-

ROE = ________ x Equity multiplier
Ans - ROA
Q.27 Common Size statements are prepared in the form of _________

Ans - Percentage
Q.28 What will be the trend percentage , if the inventory of a firm is-
2001- Rs 2,00,000; 2002-Rs 2,40,000;2003-Rs 3,00,000 & 2004-Rs 4,00,000
A. 1 ,1.2 ,1.5 ,2
B. 10 ,12 ,15, 20
C. 100,120,150,200
D. All of the above
Q.29 Liquidity ratio also known as-

i) Quick ratio
ii) Acid test ratio
iii) Working capital ratio
A. Only i
B. Only ii
C. Both i & ii
D. Only iii
Q.30 Quick ratio is 1.8 :1 , Current ratio is 2.7:1 and Current liabilities are Rs 60,000.
Then value of Stock will be __________________
Ans -54,000
Q.31Which of the following falls under profitability ratios?

i) General profitability ratios
ii) Overall profitability ratios
iii) Comprehensive profitability ratios
A. Both i & ii
B. Both i & iii
C. Both ii & iii
D. All i,ii,iii
Q.32 What will be the Gross profit if ,total sales is Rs 2,60,000 , Cost of goods sold is
Rs 2,00,000 and sales return is Rs 10,000
A. 10%
B. 15%
C. 20%
D. 25%
Q.33 Gross profit ratio should be adequate to cover ___
A. Selling expenses
B. Administrative expenses
C. Dividends
D. All the above
Q.34 The ideal level of Current Assets ratio is____
A. 4:2
B. 2:1
C. Both A & B
D. Non of the above
Q.35 Main object of trend analysis is____

A. To present absolute changes in Assets & liabilities
B. To present absolute changes in Income & expenditure
C. To help in forecasts of various items
D. Non of the above

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RASHTRASANT TUKADOJI MAHARAJ NAGPUR UNIVERSITY,

MBA- SEM I (NEW)

Time : 45 Min Max Marks :80

Q.1 Which accounting standard is applicable for valuation of inventories ?

Ans : Can not over ride

Q.10 Which report gives a review on the profitability of a business.

Q.12 Current assets are also known as…

Q.16 Which of the following is true about financial statement ?

Q.17 If a machine whose original cost is Rs 40,000 having accumulated depreciation Rs

Q.21 As per Accounting standards-3 , Cash flow is classified into-

Q.22 The objectives of Cash Flow Statement are-

Q.23 Which of the following statement are false .

Q.25 Given the following information for a business-

Q.26 What is the missing item in this formula-

Q.27 Common Size statements are prepared in the form of _________

Q.29 Liquidity ratio also known as-

Q.31Which of the following falls under profitability ratios?

Q.35 Main object of trend analysis is____

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