90% mcq were new. subjective portion was as follows:-
Q1. What info is contained in Balance sheet which is of interest to short term n long term creditors? 3marks.
Q2. What is vertical & common size analysis? What is its usefulness? 3marks
Q3. Differentiate between operating cycle & accounting cycle of a company. 3marks
Q4. ( Marks: 5 )
Following is the balance sheet of the ABC Company.
ABC Corporation
Balance Sheet
Mar. 31, 1991
Assets
Cash Rs. 12,500
Notes receivables 104,000
Accounts receivables (net) 68,500
Inventories at cost 50,000
Plan & equipment (net of depreciation) 646,000
Total assets Rs. 881,000
Liabilities & Stockholder's equity
Accounts payable Rs. 72,000
Notes payable 54,500
Accrued liabilities 6,000
Common stock (60,000 shares, Rs.
10par)
600,000
Retained earnings 148,500
Total liabilities and owner's equity Rs. 881,000
Requirement:
Calculate the current ratio and quick ratio for both years. (2.5+ 2.5)
Q5. Data given. Had to calculate quick n current ratio. Industry average was given for both ratios & we had to comment on company's financial position. 5marks
Q6. Using the following information, compute the price earning ratio to the nearest tenth.
Income Rs. 130,000
Beginning shares outstanding 250,000
Ending shares outstanding 270,000
Current price per share Rs. 7.50
Dividend per share Rs. 1.20
Q1. What info is contained in Balance sheet which is of interest to short term n long term creditors? 3marks.
Q2. What is vertical & common size analysis? What is its usefulness? 3marks
Q3. Differentiate between operating cycle & accounting cycle of a company. 3marks
Q4. ( Marks: 5 )
Following is the balance sheet of the ABC Company.
ABC Corporation
Balance Sheet
Mar. 31, 1991
Assets
Cash Rs. 12,500
Notes receivables 104,000
Accounts receivables (net) 68,500
Inventories at cost 50,000
Plan & equipment (net of depreciation) 646,000
Total assets Rs. 881,000
Liabilities & Stockholder's equity
Accounts payable Rs. 72,000
Notes payable 54,500
Accrued liabilities 6,000
Common stock (60,000 shares, Rs.
10par)
600,000
Retained earnings 148,500
Total liabilities and owner's equity Rs. 881,000
Requirement:
Calculate the current ratio and quick ratio for both years. (2.5+ 2.5)
Q5. Data given. Had to calculate quick n current ratio. Industry average was given for both ratios & we had to comment on company's financial position. 5marks
Q6. Using the following information, compute the price earning ratio to the nearest tenth.
Income Rs. 130,000
Beginning shares outstanding 250,000
Ending shares outstanding 270,000
Current price per share Rs. 7.50
Dividend per share Rs. 1.20
..........................
Another Paper:
only 8,9 mcq'z were new rest were from past pprz n quizzez
A firm's balance sheet consists of cash, marketable securities, receivables and inventory among other assets. Which of the following is the least valuable ratio for the firm? Give reasons.
0. Cash ratio
1. Quick ratio
2. Current ratio 5
State and explain any five generally acceptable accounting principles. 5
Assume that company had total assets turnover of 1.5, net profit margin of 6% and assets of Rs. 5000,000 and liabilities of Rs. 3000,000.
Requirement: Calculate net sales and net income. 5
What is the effect of financial leverage on the earnings of the firm? When leverage is advantageous? 3
Debt is not always a bad thing. Explain 3
How horizontal analysis minimizes the problems of vertical analysis? 3
A firm's balance sheet consists of cash, marketable securities, receivables and inventory among other assets. Which of the following is the least valuable ratio for the firm? Give reasons.
0. Cash ratio
1. Quick ratio
2. Current ratio 5
State and explain any five generally acceptable accounting principles. 5
Assume that company had total assets turnover of 1.5, net profit margin of 6% and assets of Rs. 5000,000 and liabilities of Rs. 3000,000.
Requirement: Calculate net sales and net income. 5
What is the effect of financial leverage on the earnings of the firm? When leverage is advantageous? 3
Debt is not always a bad thing. Explain 3
How horizontal analysis minimizes the problems of vertical analysis? 3
