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Executive Post Graduate Diploma in Management Subject: Management Accounting & Analysis Question Paper

The document contains a 20 question multiple choice exam on management accounting and analysis. The questions cover topics such as financial statement analysis, the balance sheet, income statement, accounting concepts, comparative analysis methods, and accounting transactions.

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248 views4 pages

Executive Post Graduate Diploma in Management Subject: Management Accounting & Analysis Question Paper

The document contains a 20 question multiple choice exam on management accounting and analysis. The questions cover topics such as financial statement analysis, the balance sheet, income statement, accounting concepts, comparative analysis methods, and accounting transactions.

Uploaded by

Upasana v
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Executive Post Graduate Diploma in Management

Subject: Management Accounting & Analysis


Question paper

PART A (20 MARKS)

Objective Type (1 marks each)

1. What is a creditor’s objective in performing an analysis of financial statements?


a) To decide whether or not the borrower has the ability to repay interest and principal
on
borrowed funds.
b) To determine the firm’s capital structure.
c) To determine the company’s future earnings stream.
d) To decide whether or not the firm has operated profitably in the past.

2. What information does the auditor’s report contain?


a) The results of operations.
b) An unqualified opinion.
c) An opinion as to the fairness of the financial statements.
d) A detailed coverage of the firm’s liquidity, capital resources, and operations

3. What is an investor’s objective in financial statement analysis?


a) To determine if the firm is risky.
b) To determine the stability of earnings.
c) To determine changes necessary to improve future performance.
d) To determine whether or not an investment is warranted by estimating a company’s
future earnings stream.

4. XYZ Limited has current assets worth Rs.6,00,000/-, current liabilities worth
Rs.1,00,000/-,
zero long-term liabilities and shareholders equity totaling Rs.6,00,000/-. The total
assets of the
company would be:-
a) Rs.5,00,000/-
b) Rs.8,00,000/-
c) Rs.7,00,000/-
d) Rs.7,50,000/-

5. 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
6. When assets are subtracted from liabilities it will be equal to?

a) Capital

b) Net income

c) Working capital

d) Goodwill

7. Which of the following options is not recorded in the Balance sheet?

a) Cash

b) Rent expenses

c) Building

d) Goodwill

8. Current assets are also known as:

a) Cash

b) Assets

c) Invested capital

d) Working capital

9. Preference shares have preference over equity shares with regards to:-
a) Payment of dividend
b) Repayment of capital
c) Payment of interest
d) Both (a) and (b)
e) Both (a), (b) and (c)

10. There are several dates that are relevant when a company pays a dividend. Which
date is irrelevant when a company pays a dividend?
a) Declaration date
b) Date of record
c) Payment date
d) Date of the financial statement
e) None of the above

11. The main operation expenses of a business are termed as:

a) Operating expenses

b) Non-administration expense
c) Selling expenses

d) Administration expense

12. A current asset that can be transferred into cash within three months is known as:

a) Cash equivalent

b) Intangible asset

c) Operating asset

d) Cash asset

13. Double entry accounting reflects:-


a) The matching concept
b) The prudence concept
c) The accruals concept
d) All of the above
e) None of the above

14. A method used in a comparative analysis of financial statement is:

a) Returning analysis

b) Common size analysis

c) Preference analysis

d) Graphical analysis

15. Interpretation of Financial Statements includes:


a) Criticisms and Analysis
b) Comparison and Trend Study
c) Drawing Conclusion
d) All the above

16. Tangible assets of company increased from T 4,00,000 to T 5,00,000. What is the
percentage of change ?
a) 20%
b) 25%
c) 33%
d) 50%

17. A company’s net sales are ₹ 15,00,000; cost of sales is ₹ 10,00,000 and indirect
expenses are ₹ 3,00,000, the amount gross profit will be:
(a) ₹ 13,00,000
(b) ₹ 5,00,000
(c) ₹ 2,00,000
(d) ₹ 12,00,000

18. An annual report is issued by company to its :


a) Directors
b) Auditors
c) Shareholders
d) Management

19. Balance Sheet provides information about financial position of the enterprise :
a) At a Point of Time
b) Over a Period of Time
c) For a Period of Time
d) None of the above

20. If a sole trader purchases Furniture for Rs.50,000/- for business use, paying by
cheque, when
completing his double entry accounts he will:-
a) Debit furniture account and credit cash account
b) Credit furniture account and debit bank account
c) Debit furniture account and credit bank account
d) Debit furniture account and credit capital account
e) None of the above

PART B

Record the transaction in Journal.

On April 01, 2019 Mr. X started business with Rs. 100,000 and other transactions for
the month are:

2.  Purchase Furniture for Cash Rs. 7,000.

8.  Purchase Goods for Cash Rs. 2,000 and for Credit Rs. 1,000 from Khalid Retail
Store.

14.  Sold Goods to Khan Brothers Rs. 12,000 and Cash Sales Rs. 5,000.

18.  Owner withdrew of worth Rs. 2,000 for personal use.

22.  Paid Khalid Retail Store Rs. 500.

26.  Received Rs. 10,000 from Khan Brothers.

30.  Paid Salaries Expense Rs. 2,000

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