MBA/D-21 Financial Reporting, Statements and Analysis

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MBA/D-21 27062
FINANCIAL REPORTING,
STATEMENTS AND ANALYSIS
Paper–MBA-105
Time Allowed : 3 Hours] [Maximum Marks : 70
Note : Attempt Six questions in all. Question no. 1 is compulsory and each
part of this carries 4 marks. Remaining questions are of 10 marks
each.

Compulsory Question
1. (a) State any two managerial implications of financial statement
analysis.
(b) Explain the uses of cash flow statement.
(e) How does accounting standards help in achieving the objective of
harmonization?
(d) What are the limitations of financial statement analysis?
(e) Which factors are considered for make or buy decision?
2. What are the accounting concepts and conventions? Explain the steps
involved in preparation of financial statements.
3. What do you mean by International Financial Reporting Standards
(IFRS)? What are the objectives behind implementation of IFRS?
4. “Ratio analysis is a tool to examine the health of business with a view to
make financial results more intelligible.” Substantiate in the context of
start-up / new-age companies.
5. “A funds flow statement is a better substitute for an income statement.”
Discuss.
6. There are two similar factories under the same management. The
management desires to merge these two plants. The following particulars
are available:

27062/K/963 P. T. O.
Factory I Factory II
Capacity operation 100% 60%
Sales 300 Lakhs 120 Lakhs
Variable Costs 220 Lakhs 90 Lakhs
Fixed costs 40 Lakhs 20 Lakhs
You are required to calculate the following:
(a) What would be the capacity of the merged plant to be operated for
the purpose of Break Even?
(b) What would be the profitability on working at 75% of the merged
capacity?
7. Exemplify the procedure for preparing following budgets:
(a) Sales Budget
(b) Production budget.
8. What do you understand by transfer pricing? What are methods used in
this process?
9. Write a detailed note on recent contemporary issues in accounting.

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