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JAIPUR NATIONAL UNIVERSITY,
JAIPUR
School of Distance Education
& Learning
Internal Assignment No. 1
Master of Business
Administration
Paper Code: MBA– 101
Paper Title: Accounting for Managers
Last date of submission: Max.
Marks: 30
Note:
Question No. 1 is of short answer type and is compulsory for all the students. It
carries 1 Mark each.
Q.
1. Answer all the questions:
(i) Write two objectives of financial statement
analysis.
Answer : Objectives
of financial statement analysis are as follows:
1.Assessment
Of Past Performance- Past performance is a good indicator of future performance. Investors
or creditors are interested in the trend of past sales, cost of good sold,
operating expenses,
(ii)
What do you mean by Revenue Centre?
Answer : A revenue center is a distinct operating unit of a
business that is responsible for generating sales. For example, a department
store may consider each department within the store to be a revenue center,
such as men's shoes, women' shoes, men's clothes, women's clothes, jewelry, and
(iii)
What is Depreciation? How it is calculated?
Answer : In accounting terms, depreciation is defined as
the reduction of recorded cost of a fixed asset in a systematic manner until
the value of the asset becomes zero or
negligible.
How to calculate depreciation in small business? There
three methods commonly used to calculate
(iv) Differentiate
between assets and liabilities.
Answer : Assets are the property and other tangible things
possessed by a company, which are used for the production of goods and
services.Assets are what you own. According to accounting
(v) What
is the use of preparing Sales Budget?
Answer : Purpose of preparing Sales Budget:-
1. Planning :-
The company formulates
marketing and sales objectives; the budget determines how these
(vi) What is full disclosure convention?
Answer : For a business, the full disclosure principle
requires a company to provide the necessary information so that people who are
accustomed to reading financial information can make informed
(vii) Name the various material variances.
Answer : Material variance has two definitions, one
relating to direct materials and the other to the size of a variance. They are:
·
Related
to materials.
This is the difference between the actual cost incurred for direct
(viii)
What is the objective of preparing Trial Balance?
Answer : Trial Balance is a statement of debit and credit
balances taken out from all ledger accounts including cash book. The golden
rules that “Accounting equation remains balanced all the time” and
(ix) State the formula for calculating PV Ratio.
Answer : Profit-volume ratio indicates the relationship
between contribution and sales and is usually expressed in percentage.
The ratio shows the amount of contribution per rupee of
sales. Since, in the short-term, fixed cost
(x) Write the adjustment entry for “Manager’s
Commission on Net Profit”.
Answer : Sometimes the manager is entitled for a commission
on profits which is usually calculated at a fixed percentage of the profits.
Let us take an example.
Suppose, a firm has earned Rs. 300000 as profits in the
financial year 2016-17 without charging the
Note:
Answer any four questions. Each question carries 5 marks (Word limits 500)
Q. 2.
Discuss all the concepts of accounting.
Answer: There are a number of conceptual issues that one must
understand in order to develop a firm foundation of how accounting works. These
basic accounting concepts are as follows:
Accruals concept. Revenues are recognized when earned, and
expenses are recognized when assets are consumed. This concept means that a
business may recognize sales, profits and losses in amounts that vary from what
would be recognized based on the cash received from customers or when cash is
paid to suppliers and employees. Auditors will only certify the financial
statements of a
Q. 3.
Define Zero Base Budgeting. What are the steps involved in this?
Answer: This budget is the preparation of budget starting
from Zero or from a clean state. As a new technique it was proposed by Peter
Pyher of Texas Instruments Inc., U.S.A. This technique was introduced in the
budgeting in the state of Gorgia by Mr. Jimmy Carter who was then the Governor
of that state. When Mr. Carter later on became President of the U.S.A., ZBB was
tried in federal budgeting as a means of controlling state expenditure.
Q. 4.
Explain and illustrate any two of the following ratios used in the
interpretation of published accounts of companies: -
a.
Current ratio
Answer:
b.
Return on Net Worth
Answer:
c. Debt
Equity Ratio
Answer:
Q. 5.
What are the different types of budgets prepared in an organization?
Answer: Budgets help businesses track and manage their
resources. Businesses use a variety of budgets to measure their spending and
develop effective strategies for maximizing their assets and revenues. The
following types of budgets are commonly used by businesses:
Q. 6.
Give a specimen of cash flow statement by indirect method using imaginary figures.
Answer: What
is the Cash Flow Statement Indirect Method?
The indirect method for the preparation of the statement of
cash flows involves the adjustment of net income with changes in balance sheet
accounts to arrive at the amount of cash generated by operating activities. The
statement of cash flows is one of the components of a company's set of
financial statements, and is used to reveal the sources and uses of cash by a
business. It presents
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students, get latest JNU MBA Solved assignments by professionals.
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us at: help.mbaassignments@gmail.com
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us at: 08263069601
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