Marwadi Education Foundations Group of Institutions, Rajkot 2810001 Accounting for Managers Question Bank [Theory questions from

old GTU question papers] By Dr. Bhavik Panchasara

Module I
1. Name various accounting concepts. Explain any two in detail. [7 Marks, May 2013] 2. Discuss qualitative characteristics of accounting information. [7 Marks, May 2013] 3. Who are the users of financial accounting information? [7 Marks, May 2013] 4. State strength and benefits of US GAAPs [7 Marks, May 2013] 5. Briefly explain the meaning of Accrual, Going Concern and Consistency. [7 Marks, Jan 2013] 6. What is meant by money measurement concept? A company received assets on grant. Does it have zero value and not to be shown in the balance sheets as an assets? [7 Marks, Jan 2013] 7. Briefly explain the qualitative characteristics of accounting. [7 Marks, Jan 2013] 8. State briefly the information needs of the various user groups of financial statements. [7 Marks, Jan 2013] 9. Who are the users of accounting information and why do the users need accounting information? How this information helpful to the users? [7 Marks, Jan 2013] 10. Explain the following concepts: (I) Business Entity (II) Conservatism (III) Going Concern [7, Jan 2013] 11. Discuss in brief the various levels of categories of enterprises with reference to applicability of Accounting Standards. [7 Marks, Jan 2013] 12. Why do we need global standardization of financial reporting? Is it feasible? Is it required? Why or why not? [7 Marks, Jan 2013] 13. Briefly explain GAAP. [7 Marks, Jan 2013] 14. Rajan is the accountant of a small company making two or three different types of household tools. He systematically and accurately collects and records all the transactions of the company and prepares statements, so that management knows the annual profit and financial position. 15. What more can a good accountant do? Ponders Rajan. From your understanding of the scope of accounting, advise him in what ways he might be of service to the management. [7 Marks, June 2012] 16. Explain in detail the applicability of AS with special reference to various levels of categories of enterprises. [7 Marks, June 2012] 17. Define IFRS. What are the advantages of converting to IFRS? [7 Marks, June 2012] 18. Due to globalization of economics, it is imperative to have uniform global financial reporting Discuss giving the significance of IFRS. [7 Marks, June 2012] 19. Who are the users of accounting information? Why do users need accounting information? [7, Dec 2011]

20. Briefly explain the GAAP [7 Marks, Dec 2011] 21. Briefly explain the IFRS. [7 Marks, Dec 2011] 22. What is Accounting Equation? Describe all the possible changes in it, which keeps the equation true, with hypothetical transactions. [7 Marks, Dec 2011] 23. Explain following accounting concepts with clear examples: (a) Going Concern Concept (b) Money Measurement Concept [7 Marks, Dec 2011] 24. What is IFRS? Describe in detail latest developments of IFRS. [7 Marks, Dec 2011] 25. Who are the users of accounting information, and why do the users need accounting information? How this information helpful to the users? [7 Marks, July 2011] 26. What do you meant by inventory valuation? State different methods of it. Also discuss the impact of each valuation methods on COGS and Profit in inflated prices and deflected prices. [7, July 2011] 27. Why do we need global standardization of financial reporting? Is it feasible? Is it required? Why or why not? [7 Marks, July 2011] 28. Briefly explain GAAP [7 Marks, July 2011]. 29. Explain the following concepts: (a) The Entity Concept (b) Accrual Concept (c) Realization Concept [7 Marks, Jan 2011] 30. With reference to the following items, distinguish accounting treatment under IAS, Indian GAAP and US GAAP: (a) Cash and Cash Equivalents (b) Depreciation (c) Miscellaneous Expenditure [7 Marks, Jan 2011] 31. Discuss in detail about salient aspects of AS 1 dealing with disclosure of accounting policies. Give a suitable example. [7 Marks, Jan 2011] 32. Explain in detail the strengths of US GAAP and key benefits to companies complying with US GAAP. Can you say US GAAP is popular among Indian industries? [7 Marks, Jan 2011] 33. Describe briefly various steps of accounting process. [7 Marks, Apr 2010] 34. Describe briefly various concepts of accounting. [7 Marks, Apr 2010] 35. Write a brief note on IFRS. [7 Marks, Apr 2010] 36. Describe the provisions of the Companies Act 1956 regarding the accounts of company. [7, Apr 2010] 37. How do GAAP present an ethical issue in Financial Accounting? [7 Marks, Jan 2010] 38. Discuss utility and significance of financial statements to various parties interested in business concern. [7 Marks, Jan 2010] 39. Explain the limitations of financial accounting. [7 Marks, Jan 2010]

Module II
1. Name AS 1, 6 9 and 10. Explain any one in detail. [7 Marks, May 2013] 2. Name AS 2, 13 and 26. Explain any one in detail. [7 Marks, May 2013]

3. What are the causes of depreciation? Explain any three methods of providing depreciation with imaginary figures. [7 Marks, May 2013] 4. State the principles of recognition of revenue and expense. [7 Marks, Jan 2013] 5. Briefly explain the AS 26. [7 Marks, Jan 2013] 6. Discuss the basic disclosure principles to be followed in corporate reporting. [7 Marks, Jan 2013] 7. Explain the meaning of investments, its scope and how is the cost of investments determined in different situations as per AS 13? [7 Marks, June 2012] 8. Urvashi Camera Limited (UCL) enters into an agreement with Trident Limited, which runs the West Side chain of family stores, to place cameras in West Side stores. As per the agreement, West Side receives the cameras on consignment basis and makes best efforts to sell the cameras at the best price depending upon the competition and new offerings by competitors. UCL maintains title to cameras until West Side sells them. When West Side sells the cameras, it remits the selling price minus a fee to UCL. UCL takes back any damaged or defective cameras. Required: Explain when UCL should recognize the revenue from the same of Cameras? [7 Marks, June 2012] 9. Explain the important provision of AS 10. [7 Marks, June 2012] 10. Discuss the WDV and SLM methods of depreciation. Also mention the major provisions of the Income Tax Act regarding depreciation. [7 Marks, June 2012] 11. As per the revised AS 2, issued by ICAI, FIFO and WAC methods are recognized methods for inventory valuation Explain the FIFO and WAC methods of inventory valuation. [7 Marks, June 2012] 12. Discuss Income Recognition and Accrual Income AS 9. [7 Marks, Dec 2011] 13. What do you meant by Depreciation? What are its causes? Why do firms provide depreciation? [7, June 2012] 14. What is impairment of assets? Explain with reference to AS 28. [7 Marks, Dec 2011] 15. Explain methods of Depreciation on fixed assets. [7 Marks, July 2011] 16. Define term Related Party and explain in brief about Related Party Disclosures under AS 18. [7 Marks, Jan 2011] 17. What are intangible assets? How is goodwill valued? [7 Marks, Apr 2010] 18. Explain FIFO and LIFO methods of inventory valuation with comparison. Give suitable illustration. [7 Marks, Apr 2010] 19. What do you mean by the term depreciation? What are its causes? Why do firms provide depreciation? [7 Marks, Jan 2010]

Module III

1. Distinguish between structure of balance sheet as per IFRS and Schedule VI of the Companies Act. [7 Marks, Jan 2013] 2. What is balance sheet? Draw a proforma in vertical format. Explain its significance. How does it differs from the trial balance? [7 Marks, June 2012] 3. Explain the impact of errors on trial balance by giving suitable examples. Errors disclosed and Errors not disclosed by the trial balance. [7 Marks, June 2012] 4. Financial statements are the most important part of financial reporting Discuss the statement giving the objectives of financial statements. [7 Marks, June 2012] 5. Show format of balance sheet in vertical form for a company. [7 Marks, Dec 2011] 6. Quality of earnings suffers from certain limitations of financial statements Critically examine. [7 Marks, Jan 2011] 7. Write short notes on: (a) Miscellaneous Expenditure and Debit Balance of P & L Account (b) Shareholders Funds (c) Capital Reserves [7 Marks, Jan 2011] 8. Give abridged format of a corporate balance sheet in vertical statement form. [7 Marks, Apr 2010]

Module IV
1. State advantages and limitations of Ratio Analysis [7 Marks, May 2013] 2. Discuss various methods of financial statement analysis in brief (tools and techniques) [7 Marks, May 2013] 3. Ratio analysis is a tool to evaluate a firms liquidity and profitability position Discuss the statement with suitable examples. [7 Marks, Jan 2013] 4. Discuss the advantages and limitations of fund flow statement. [7 Marks, Jan 2013] 5. Explain the difference between find flow and cash flow statement. [7 Marks, Jan 2013] 6. What is fund flow statement? Discuss the importance of fund flow statement. [7 Marks, Jan 2013] 7. Discuss in brief Fund and importance of Fund Flow Statement. [7 Marks, Jan 2013] 8. Discuss in brief the meaning and objectives of financial statement analysis. [7 Marks, Jan 2013] 9. Discuss the purpose of operating profit ratio and net profit ratio. When is ROCE greater than RONW? [7 Marks, Jan 2013] 10. What do you understand by Trend Analysis? Explain in brief with hypothetical example. [7 Marks, Jan 2013] 11. Explain the meaning and important features of Inflation Accounting and briefly explain the effects of Inflation on financial statements. [7 Marks, June 2012] 12. Financial ratio analysis by itself does not provide an understanding of the operations of the firm. Financial analysis should be integrated with industry analysis, analysis of the economy, and analysis of the firms strategy. Analyze the statement. [7 Marks, June 2012]

13. It is prudent to confirm the findings of Horizontal Analysis, by using Trend Analysis Do you agree with the above statement? Why? [7 Marks, June 2012] 14. Give the major ratios which help in analyzing the profitability and liquidity position of a firm. [7 Marks, June 2012] 15. Define HR Accounting giving its objectives and advantages. [7 Marks, June 2012] 16. Explain responsibility accounting giving the various types of responsibility centers. [7 Marks, June 2012] 17. Write a short note on Relevance of environmental Accounting. [7 Marks, June 2012] 18. Explain meaning and objectives of financial statement analysis. [7 Marks, Dec 2011] 19. Explain the ratio analysis as a tool of financial statement analysis and also explain different types of ratios. [7 Marks, Dec 2011] 20. Explain the meaning and utility of Horizontal and Vertical Analysis of Financial Statements. [7 Marks, Dec 2011] 21. What is the utility of Environmental Accounting? [7 Marks, Dec 2011] 22. Explain Responsibility Accounting in Detail. [7 Marks, Dec 2011] 23. Explain HR accounting in detail. [7 Marks, Dec 2011] 24. Explain the significance of ratio analysis. [7 Marks, July 2011] 25. What do you understand by Trend Analysis? Explain with hypothetical example. [7 Marks, July 2011] 26. What are the merits of introducing environmental accounting and reporting the results obtained? [7 Marks, July 2011] 27. Explain the role of HR Accounting. [7 Marks, July 2011] 28. What are the various tools of financial statement analysis? [7 Marks, Apr 2010] 29. Explain liquidity, solvency and profitability ratios. [7 Marks, Apr 2010] 30. Explain responsibility accounting. [7 Marks, Apr 2010] 31. Describe Inflation Accounting. [7 Marks, Apr 2010] 32. What do you understand by Common Size Statement? What is its purpose? Explain with suitable example. [7 Marks, Jan 2010] 33. Describe the progress made by India so far in the field of HR Accounting. [7 Marks, Jan 2010] 34. Define inflation accounting and explain the provisions for the same in GAAP. [7 Marks, Jan 2010] 35. Explain the significance of Environmental Accounting in the Indian context. [7 Marks, Jan 2010] 36. Explain foreign exchange accounting process in detail. [7 Marks, Jan 2010] 37. Explain the various classification of ratios. [7 Marks, Jan 2010] 38. Explain the meaning and objectives of financial statement analysis. [7 Marks, Jan 2010]