SYBBI MA FM I TAX MCQ Past Paper PDF

**Management Accounting** +-----------------------+-----------------------+-----------------------+ | **Q. 1** | **(a)** | **Select the most | | | | appropriate answer | | | | f...

**Management Accounting** +-----------------------+-----------------------+-----------------------+ | **Q. 1** | **(a)** | **Select the most | | | | appropriate answer | | | | from the following : | | | | ( Any Eight )** | +=======================+=======================+=======================+ | | | | +-----------------------+-----------------------+-----------------------+ | | | 1. The Function of | | | | management | | | | accounting | | | | include | | | | \-\-\-\-\-\-\-\-- | | | | | | | | | | | | | | | | a. Collection of | | | | data c) Analysis | | | | of data | | | | | | | | b. Presentation of | | | | data d) All the | | | | above | | | | | | | | | | | | | | | | 2. Balance Sheet is | | | | a statement of | | | | \-\-\-\-\-\-\-\-\ | | | | -- | | | | | | | | | | | | | | | | a. Assets & | | | | Liabilities c) | | | | Working Capital | | | | | | | | b. Operating | | | | Results d) None | | | | of the above | | | | | | | | | | | | | | | | 3. Comparative | | | | Statement shows | | | | \-\-\-\-\-\-\-\-- | | | | | | | | | | | | | | | | a. One year's | | | | performance c) | | | | Financial | | | | performance | | | | | | | | b. Comparative | | | | performance d) | | | | Profitability | | | | performance | | | | | | | | | | | | | | | | 4. Current ratio | | | | shows | | | | \-\-\-\-\-\-\-\-- | | | | | | | | | | | | | | | | a. Short term | | | | financial | | | | position c) | | | | Collection | | | | efficiency | | | | | | | | b. Financial | | | | stability d) | | | | Higher | | | | profitability | | | | | | | | | | | | | | | | 5. Working capital | | | | is the capital | | | | required to | | | | finance | | | | \-\-\-\-\-\-- | | | | | | | | | | | | | | | | a. Day to day | | | | operation c) | | | | Purchase of fixed | | | | assets | | | | | | | | b. Settlement of | | | | long term | | | | liabilities d) | | | | None of the above | | | | | | | | | | | | | | | | 6. Long term | | | | decisions are | | | | called as | | | | \-\-\-\-\-\-\-\-\ | | | | -- | | | | | | | | | | | | | | | | a. Profit volume | | | | analysis c) | | | | Working capital | | | | decisions | | | | | | | | b. Future | | | | decisions d) | | | | Capital Budgeting | | | | decisions | | | | | | | | | | | | | | | | 7. Management | | | | Accounting | | | | relates to | | | | \-\-\-\-\-\-\-\-\ | | | | -\-\-- | | | | | | | | | | | | | | | | a. Recording of | | | | accounting | | | | data c) Recording | | | | of costing data | | | | | | | | | | | | | | | | c. Presentation of | | | | accounting | | | | data d) None of | | | | the above | | | | | | | | | | | | | | | | 8. General Reserve | | | | is created out of | | | | \-\-\-\-\-\-\-\-\ | | | | -\-\-- | | | | | | | | | | | | | | | | a. Profit c) Income | | | | | | | | b. Expenditure d) | | | | Dividend received | | | | | | | | | | | | | | | | 9. Earliest year is | | | | to be considered | | | | as base year , | | | | the value of | | | | which are taken | | | | as 100 in | | | | \-\-\-\-\-\-\-\-- | | | | | | | | | | | | | | | | a. Balance sheet c) | | | | Income statement | | | | | | | | b. Trend Analysis d) | | | | Comparative | | | | statements | | | | | | | | | | | | | | | | 10. Net Profit ratio | | | | indicates | | | | \-\-\-\-\-\-\-\-\ | | | | -\-- | | | | | | | | | | | | | | | | a. Status of assets | | | | and | | | | liabilities c) | | | | Profitability | | | | | | | | b. Trading | | | | efficiency d) | | | | Liquidity | | | | | | | | **(b) State whether | | | | the following | | | | statements are True | | | | or False ( Any seven | | | | )** | | | | | | | | 1. Depreciation is a | | | | non -- cash cost | | | |. | | | | | | | | 2. Provision for | | | | contingency is | | | | added to net | | | | current assets to | | | | get working | | | | capital | | | | requirement. | | | | | | | | 3. Analysis is must | | | | for | | | | interpretation. | | | | | | | | 4. Current ratio is | | | | also known as | | | | working capital | | | | ratio. | | | | | | | | 5. Patents and | | | | copyrights are | | | | intangible assets | | | |. | | | | | | | | 6. Publication of | | | | Management | | | | Accounting Report | | | | is not compulsory | | | |. | | | | | | | | 7. Capital Budgeting | | | | decisions are | | | | very easy to take | | | |. | | | | | | | | 8. Inadequate | | | | working capital | | | | increase | | | | efficiency of | | | | management. | | | | | | | | 9. Stock turnover | | | | ratio indicates | | | | the speed of | | | | collection of | | | | debt. | | | | | | | | 10. In comparative | | | | income statement | | | | capital employed | | | | is considered | | | | equal to 100. | +-----------------------+-----------------------+-----------------------+ | **Q. 1** | **(a)** | **Rewrite the | | | | statements and State | | | | whether it is True or | | | | false ( Any Ten )** | +-----------------------+-----------------------+-----------------------+ | | i. 1. | Sales-cost of goods | | | | sold = net profit | +-----------------------+-----------------------+-----------------------+ | | ii. 2. | Contingent | | | | liabilities do appear | | | | in the balance sheet | +-----------------------+-----------------------+-----------------------+ | | iii. 3. | Stock turnover ratio | | | | is a composite ratio | +-----------------------+-----------------------+-----------------------+ | | iv. 4. | Bank overdraft is not | | | | considered while | | | | calculating | | | | Debt-Equity Ratio. | +-----------------------+-----------------------+-----------------------+ | | v. 5. | In the absence of | | | | specific instructions | | | | while calculating | | | | work- in progress it | | | | is assumed that | | | | labour and overheads | | | | occur evenly. | +-----------------------+-----------------------+-----------------------+ | | vi. 6. | If wages are paid at | | | | the beginning of | | | | every month for the | | | | previous month then | | | | the period of lag in | | | | payment of wages is | | | | one month. | +-----------------------+-----------------------+-----------------------+ | | vii. 7. | Dividends are cash | | | | flows returned to the | | | | shareholders. | +-----------------------+-----------------------+-----------------------+ | | viii. 8. | Investors are risk | | | | averse. | +-----------------------+-----------------------+-----------------------+ | | ix. 9. | Hybrid dividend | | | | policy is a | | | | combination between | | | | the residual and | | | | stable dividend | | | | policy. | +-----------------------+-----------------------+-----------------------+ | | x. 10. | Adequate working | | | | capital ensures | | | | credit standing of | | | | the firm. xi. Owners | | | | fund and borrowed | | | | fund are two | | | | constituents of total | | | | funds of a company. | | | | | | | | Xii. Revenue | | | | statements indicates | | | | operating performance | | | | of a company. | +-----------------------+-----------------------+-----------------------+ | | | | +-----------------------+-----------------------+-----------------------+ | | **(b)** | **Rewrite the | | | | sentences by choosing | | | | most appropriate | | | | option given below ( | | | | Any Ten )** | +-----------------------+-----------------------+-----------------------+ | | i. 1. | \_\_\_\_\_\_\_ is not | | | | considered as | | | | intangible assets. | | | | | | | | \(a) Loose Tools, | | | | (b) Patents, (c) | | | | Trademarks (d) | | | | Goodwill | +-----------------------+-----------------------+-----------------------+ | | ii. 2. | if profit before Tax | | | | Ratio is 25% and the | | | | company is subject to | | | | income tax rate of | | | | then the profit after | | | | tax ratio will be | | | | \_\_\_\_\_. | | | | | | | | \(a) 7.5% (b) 32% | | | | (c) 24.5% (d) 17.5% | +-----------------------+-----------------------+-----------------------+ | | iii. 3. | Current Ratio serves | | | | as an index of | | | | \_\_\_\_\_\_\_ | | | | solvency. | | | | | | | | \(a) long-term (b) | | | | Short-terms (c) | | | | immediate (d) | | | | adequate | +-----------------------+-----------------------+-----------------------+ | | iv. 4. | Estimation of working | | | | capital deals with | | | | expected net | | | | investment in \_\_\_. | | | | | | | | \(a) Current assets, | | | | (b) Fixed assets | | | | (c) Current | | | | Liabilities (d) | | | | Borrowed Funds | +-----------------------+-----------------------+-----------------------+ | | v. 5. | If EPS of the firm is | | | | \` 10 and retention | | | | is 0% the dividend | | | | payout would be. | | | | | | | | \(a) 10 (b) 0 (c) 5 | | | | (d) 2 | +-----------------------+-----------------------+-----------------------+ | | vi. 6. | What is the | | | | percentage yield on | | | | shares of face value | | | | \`10 purchased at \` | | | | 20 which pay a | | | | dividend of 20% ? | | | | | | | | \(a) 10% (b) 2 % (c) | | | | \` 4 % (d) 20 % | +-----------------------+-----------------------+-----------------------+ | | vii. 7. | The cost of | | | | \_\_\_\_\_ capital is | | | | the highest | | | | | | | | \(a) Equity (b) | | | | Preference (c) Debt | | | | (d) Own | +-----------------------+-----------------------+-----------------------+ | | viii. 8. | SEBI Act was passed | | | | in the year | | | | | | | | \(a) 1956 (b) 1988 | | | | (c) 1992 (d) 1999 | +-----------------------+-----------------------+-----------------------+ | | ix. 9. | The terms | | | | underwriting was | | | | derived from | | | | \_\_\_\_\_ | | | | | | | | \(a) Insurance, (b) | | | | Banking (c) Capital | | | | Market (d) | | | | Companies Act | +-----------------------+-----------------------+-----------------------+ | | x. 10. | Which of the | | | | following is an item | | | | of current liability? | | | | | | | | \(a) Bank Balance, | | | | (b) Bank overdraft | | | | (c) Cash balance | | | | (d) Unsecured | | | | Loans. Xi. In | | | | Vertical Balance | | | | sheet , Bank | | | | overdraft is | | | | considered as | | | | \-\-\-\-\-\-\-\-\-- | | | | | | | | a\) Current assets | | | | b) Quick | | | | liabilities c) Non | | | | - quick liability d | | | | ) Non -- current | | | | assets | | | | | | | | xii. Satisfactory | | | | level of Current | | | | ratio is | | | | \-\-\-\-\-\-\-\-\-- | | | | | | | | a\) 1:1 b) 3:1 c) | | | | 2:1 d ) 1.5 : 1 | +-----------------------+-----------------------+-----------------------+ +-----------------+-----------------+-----------------+-----------------+ | **Q. 1** | **A** | **Match the | | | | | following & | | | | | rewrite in | | | | | Answer book** | | | | | **: ( Any Eight | | | | | )** | | +=================+=================+=================+=================+ | | | | | +-----------------+-----------------+-----------------+-----------------+ | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Column A | | | | | Column B | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Manageme | | | | | nt Accounting | | | | | | | | | | | | | | | Total Cu | | | | | rrent assets | | | | | | | | | | | | | | | | | | | | | | | | | Trend An | | | | | alysis | | | | | | | | | | | | | | | Non quic | | | | | k current asset | | | | | s | | | | | | | | | | | | | | | | | | | | | | | | | Scrap va | | | | | lue under Capit | | | | | al Budgeting | | | | | | | | | | | | | | | A techni | | | | | ques of capital | | | | | Budgeting< | | | | | /li> | | | | | | | | | | | | | | | | | | | | | | | | | Gross wo | | | | | rking capital | | | | | | | | | | | | | | | Used for | | | | | decision makin | | | | | g | | | | | | | | | | | | | | | | | | | | | | | | | Current | | | | | assets less cur | | | | | rent liabilitie | | | | | s | | | | | | | | | | | | | | | Fictitio | | | | | us assets | | | | | | | | | | | | | | | | | | | | | | | | | Prepaid | | | | | expenses | | | | | | | | | | | | | | | Non quic | | | | | k current liabi | | | | | lities | | | | | | | | | | | | | | | | | | | | | | | | | Securiti | | | | | es Premium< | | | | | /li> | | | | | | | | | | | | | | | Earliest | | | | | year as base y | | | | | ear | | | | | | | | | | | | | | | | | | | | | | | | | Payback | | | | | period | | | | | | | | | | | | | | | Reserve< | | | | | /p> | | | | | | | | | | | | | | | | | | | | | | | | | Prelimin | | | | | ary Expenses | | | | | | | | | | | | | | | Added to | | | | | last year’s ca | | | | | sh inflow | | | | | | | | | | | | | | | | | | | | | | | | | Bank ove | | | | | rdraft | | | | | | | | | | | | | | | Working | | | | | capital | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | +-----------------+-----------------+-----------------+-----------------+ | | 1. | Distinguish | **7** | | | | between | | | | | Financial | | | | | Accounting and | | | | | Management | | | | | Accounting | | +-----------------+-----------------+-----------------+-----------------+ | Explain Payback | | | | | period and | | | | | Profitability | | | | | Index method of | | | | | Capital | | | | | Budgeting. | | | | +-----------------+-----------------+-----------------+-----------------+ | **Write short | | | | | notes (any | | | | | Three )** | | | | +-----------------+-----------------+-----------------+-----------------+ | Net Present | | | | | value | | | | +-----------------+-----------------+-----------------+-----------------+ | Sources of | | | | | Working Capital | | | | +-----------------+-----------------+-----------------+-----------------+ | Balance sheet | | | | | Ratios | | | | +-----------------+-----------------+-----------------+-----------------+ | **Scope of | | | | | Management | | | | | Accounting** | | | | +-----------------+-----------------+-----------------+-----------------+ | What is working | | | | | capital ? what | | | | | are the factors | | | | | determining | | | | | working capital | | | | | requirements ? | | | | | 8 | | | | +-----------------+-----------------+-----------------+-----------------+ | Explain all | | | | | Balance Sheet | | | | | ratios. 7 | | | | +-----------------+-----------------+-----------------+-----------------+ +-----------------------------------------------------------------------+ | **Write short notes (any Three )** | +=======================================================================+ | Classification of current Assets | +-----------------------------------------------------------------------+ | Common size Financial Statements | +-----------------------------------------------------------------------+ | Gross Profit Ratio | +-----------------------------------------------------------------------+ | Accounting Rate of Return method | +-----------------------------------------------------------------------+ | Features of Capital Budgeting Decisions | | | | Q. 1 B ) Write True or False | +-----------------------------------------------------------------------+ | | +-----------------------------------------------------------------------+ 1. Net working capital means Total current assets. 2. The amount of working capital over and above the permanent working capital is temporary working capital. 3. Operating cycle = Raw material + Work in progress + Finished goods + Debtors -- Creditors. 4. Cash flow and accounting profit are different. 5. There is a time element involved in capital Budgeting. 6. Capital Budgeting decisions are long term decisions. 7. Liquid ratio is used to determined the company's long term solvency. 8. A higher debt equity ratio indicates a safer financial position of the company. 9. Outsiders contribution is not included in proprietors fund. 10. Revenue statement indicates operating performance of a company. **Financial Management I** +-----------------------+-----------------------+-----------------------+ | **Q.1** | **A** | **Fill in the blanks | | | | ( Any 8 )** | +=======================+=======================+=======================+ | | | | +-----------------------+-----------------------+-----------------------+ | | 1 | \-\-\-\-\-\-- Shares | | | | are issued free of | | | | cost. ( Equity | | | | /Bonus ) | +-----------------------+-----------------------+-----------------------+ | | 2 | \-\-\-\-\-\-\-- | | | | increases the no. of | | | | shares without | | | | actually increasing | | | | the paid up value of | | | | the share capital. ( | | | | Stock split up / | | | | Right issue ) | +-----------------------+-----------------------+-----------------------+ | | 3 | The term cum - | | | | dividend states | | | | \-\-\-\-\-\-\-- ( | | | | Excluding dividend / | | | | Including dividend ) | +-----------------------+-----------------------+-----------------------+ | | 4 | SEBI Act was passed | | | | in the year | | | | \-\-\-\-\-- ( 1992 / | | | | 1947 ) | +-----------------------+-----------------------+-----------------------+ | | 5 | A stock exchange is a | | | | \-\-\-\-\-\-- market | | | |. ( Primary / | | | | Secondary ) | +-----------------------+-----------------------+-----------------------+ | | 6 | Goodwill is an | | | | example of | | | | \-\-\-\-\-- asset. ( | | | | Tangible / Intangible | | | | ) | +-----------------------+-----------------------+-----------------------+ | | 7 | The cost of | | | | \-\-\-\-\-\-\-\-- | | | | capital is the | | | | highest. ( Equity / | | | | Preference ) | +-----------------------+-----------------------+-----------------------+ | | 8 | Traditionally UTI is | | | | a \-\-\-\-\-- ( Bank | | | | / Mutual fund ) | +-----------------------+-----------------------+-----------------------+ | | 9 | The term underwriting | | | | is was derived from | | | | \-\-\--. ( Insurance | | | | / Capital markets ) | +-----------------------+-----------------------+-----------------------+ | | 10 | Dividend is | | | | distributed on | | | | \-\-\-\-\-- ( Profit | | | | before tax / Profit | | | | after tax ) | +-----------------------+-----------------------+-----------------------+ | | | | +-----------------------+-----------------------+-----------------------+ | | **B** | **State whether the | | | | statements are True | | | | or False (Any 7 )** | +-----------------------+-----------------------+-----------------------+ | | | | +-----------------------+-----------------------+-----------------------+ | | 1 | Government Bonds are | | | | risk Free investments | +-----------------------+-----------------------+-----------------------+ | | 2 | Mutual funds returns | | | | are subjects to | | | | market risk | +-----------------------+-----------------------+-----------------------+ | | 3 | Equity shares are | | | | medium term sources | | | | of Finance | +-----------------------+-----------------------+-----------------------+ | | 4 | Cumulative debentures | | | | are a type of | | | | Debentures | +-----------------------+-----------------------+-----------------------+ | | 5 | Creditors are short | | | | term sources of | | | | Finance | +-----------------------+-----------------------+-----------------------+ | | 6 | Bonus shares are | | | | issued to Preference | | | | shareholders | +-----------------------+-----------------------+-----------------------+ | | 7 | The offer of Right | | | | shares is available | | | | to all shareholders. | +-----------------------+-----------------------+-----------------------+ | | 8 | Borrowed fund is | | | | ownership capital | +-----------------------+-----------------------+-----------------------+ | | 9 | ADR is raising Fund | | | | through foreign | | | | currency | +-----------------------+-----------------------+-----------------------+ | | 10 | **Column A Column B** | +-----------------------+-----------------------+-----------------------+ | | | | +-----------------------+-----------------------+-----------------------+ | | | Payback period a. | | | | Stakeholders | +-----------------------+-----------------------+-----------------------+ | | | Gordon Model b. Tax | | | | saving | +-----------------------+-----------------------+-----------------------+ | | | Debentures c. Does | | | | not consider time | | | | value of money | +-----------------------+-----------------------+-----------------------+ | | | Interest d.Borrowed | | | | capital | +-----------------------+-----------------------+-----------------------+ | | | Preference Share | | | | capital e. Dividend | | | | policy | +-----------------------+-----------------------+-----------------------+ | | | Government f. Secured | | | | loan | +-----------------------+-----------------------+-----------------------+ | | | Turnover g. Equity | | | | shareholders | +-----------------------+-----------------------+-----------------------+ | | | Deep discount Bonds | | | | h. Sales | +-----------------------+-----------------------+-----------------------+ | | | Pledge i. Fixed | | | | dividend | | | | | | | | **True or False** | +-----------------------+-----------------------+-----------------------+ | | | Debenture represent | | | | borrowed capital of a | | | | company | +-----------------------+-----------------------+-----------------------+ | | | Zero coupon Bonds | | | | reflect deep discount | | | | bonds | +-----------------------+-----------------------+-----------------------+ | | | GDR is an instrument | | | | which is linked to | | | | equity | +-----------------------+-----------------------+-----------------------+ | | | Letter of credit is | | | | issued by exporter's | | | | bank | +-----------------------+-----------------------+-----------------------+ | | | NPV = Net PAT -- | | | | Initial Investment | +-----------------------+-----------------------+-----------------------+ | | | Bonus shares are | | | | issued to Preference | | | | shareholders | +-----------------------+-----------------------+-----------------------+ | | | NPV method considered | | | | time value of money | +-----------------------+-----------------------+-----------------------+ | | | Capital budgeting | | | | decision are long | | | | term decision | +-----------------------+-----------------------+-----------------------+ | | | Depreciation is a non | | | | cash item | | | | | | | | **True or False** | +-----------------------+-----------------------+-----------------------+ | | | Profit maximization | | | | is concerned with | | | | those acts which are | | | | to maximize wealth. | +-----------------------+-----------------------+-----------------------+ | | | Treasury bill source | | | | of finance is long | | | | term source of | | | | finance | +-----------------------+-----------------------+-----------------------+ | | | GDR and ADR are | | | | denominated in Euros | +-----------------------+-----------------------+-----------------------+ | | | Over -- | | | | capitalization does | | | | have adverse effects | +-----------------------+-----------------------+-----------------------+ | | | The ratio of debt and | | | | equity must be 1:1 | +-----------------------+-----------------------+-----------------------+ | | | Debt is cheapest | | | | source of Finance | +-----------------------+-----------------------+-----------------------+ | | | NPV does not consider | | | | time value of money | +-----------------------+-----------------------+-----------------------+ | | | A project with NPV \> | | | | 1 is rejected | +-----------------------+-----------------------+-----------------------+ | | | Market Value of | | | | shares of under | | | | capitalized company | | | | rises | +-----------------------+-----------------------+-----------------------+ | | | Column A Column B | +-----------------------+-----------------------+-----------------------+ | | | | +-----------------------+-----------------------+-----------------------+ | | | Creditors a. Net | | | | worth | +-----------------------+-----------------------+-----------------------+ | | | Owners Fund b. | | | | Unsecured loan | +-----------------------+-----------------------+-----------------------+ | | | Fixed deposit c. | | | | Current liability | +-----------------------+-----------------------+-----------------------+ | | | Treasury bill d. | | | | Short term source of | | | | Finance | +-----------------------+-----------------------+-----------------------+ | | | Equity share capital | | | | e. Long term source | | | | of Finance | +-----------------------+-----------------------+-----------------------+ | | | Ploughing back of | | | | Profit f. More the | | | | returns | +-----------------------+-----------------------+-----------------------+ | | | More the risk g. Less | | | | the returns | +-----------------------+-----------------------+-----------------------+ | | | Less the risk h. | | | | Internal source of | | | | Finance | +-----------------------+-----------------------+-----------------------+ | | | Equity i. CA -- CL | +-----------------------+-----------------------+-----------------------+ | | | Working capital j. | | | | Cheapest Sources of | | | | Finance | +-----------------------+-----------------------+-----------------------+ | | | Dividend Policy k. | | | | Gordon | | | | | | | | **Short Note** | | | | | | | | MM Approach | | | | | | | | 2\. Modigliani | | | | Approach | | | | | | | | 3\. WACC | | | | | | | | 4\. Cost of capital | | | | | | | | 5\. Payback period | | | | | | | | Explain features of | | | | the venture capital | | | | **8 Marks** | | | | | | | | **C.** Explain | | | | factors determining | | | | divided policy **7 | | | | Marks** | | | | | | | | Write short Notes ( | | | | Any three ) **15 | | | | Marks** | | | | | | | | **1.**Any 5 type of | | | | risk | | | | | | | | 2\. Capital | | | | rationing | | | | | | | | 3.Hire Purchase | | | | | | | | 4\. Certificate if | | | | Deposits | | | | | | | | 5\. Depository | | | | receipts | | | | | | | | Explain Features of | | | | corporate finance 8 | | | | Marks | | | | | | | | C. What are | | | | objectives of | | | | Financial Management | | | | ? 7 Marks | | | | | | | | Hybrid Financing | | | | | | | | 2\. Concept of free | | | | cash flow | | | | | | | | 3\. Weighted Average | | | | Cost of capital | | | | | | | | 4\. Walter model | | | | | | | | 5\. Accounting rate | | | | of return | | | | | | | | What are the features | | | | of Venture capital | | | | **8 Marks** | | | | | | | | **C**. What are the | | | | objectives of | | | | Financial Management | | | | **7 Marks** | +-----------------------+-----------------------+-----------------------+