Download JNTUA MCA 2014 Feb 1st Sem 9FHS103 Accounting And Financial Management Question Paper

Download JNTUA (JNTU Anantapur) MCA (Master of Computer Applications) 2014 Feb Regular-Supplementary 1st Sem 9FHS103 Accounting And Financial Management Question Paper

Code: 9FHS103

MCA I Semester Regular & Supplementary Examinations February 2014
ACCOUNTING & FINANCIAL MANAGEMENT
(For 2009, 2010, 2011, 2012 & 2013 admitted batches only)
Time: 3 hours Max. Marks: 60

Answer any FIVE questions
All questions carry equal marks
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1 What is double entry system? Discuss the rules, advantages and disadvantages of this
system.

2 What is an accounting equation? Illustrate it?s mechanism by imaginary figures to prove
that the two sides of the equation are always equal.

3 How does the ?modern? financial manager differ from the ?traditional? financial
manager? Does the ?modern? financial manager?s role differ for the large diversified
firm and the small to medium size firm?

4 (a) Define cost of capital? Explain its significance in financial decision making.
(b) How is the cost of debt computed? How does it differ from the cost of preference
capital?

5 The following are ratios extracted balance sheet of a company as on 31/12/2005. Draw
up the year 2005 balance sheet of the company.
Current liabilities 1.0
Current assets 2.5
Working capital Rs. 3,00,000
Quick (liquid) ratio 1.5
Stock turnover ratio 6 times
Gross profit as percentage of sales 20%
Debt collection period 2 months
Shareholders capital Rs.5,00,000
Reserves and surplus Rs.2,50,000
Fixed assets turnover 2 times.

6 What is funds flow statement? Discuss the significance of funds flow statement as a
tool of financial analysis.

7 From the following information calculate:
(a) P/V ratio.
(b) Breakeven point.
(c) Margin of safety.
Total sales Rs. 3,60,000
Selling price per unit Rs.100
Variable cost per unit Rs.50
Fixed costs Rs. 1,00,000.
(d) If selling prices is reduced to Rs. 90, by how much the margin of safety is reduced?

8 Explain the merits and demerits of the time-adjusted methods of evaluating the
investment projects.
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