QB – Accounting and Finance for Managers

01 Introduction to Financial Accounting

01 Introduction to Financial Accounting MCQs
Q 1.1. What is accounting? What is its importance?
Q 1.2. Write a note on evolution of accounting.
Q 1.3. Who are users of financial statements?
Q 1.4. Explain in brief. Distinguish between – a. Financial and cost accounting :
Q 1.4. Explain in brief. Distinguish between – b. Financial and management accounting :
Q 1.4. Explain in brief. Distinguish between – c. Cost and management accounting :
Q 1.5. Explain accounting as academic discipline.
Q 1.6. Write a note on – a. Finance function and accounting :
Q 1.6. Write a note on – b. Accounting profession as a career :
Q 1.7. Write a note on ethical issues in accounting.
Q 1.8. Explain relationship between corporate governance and accounting.
Q 1.9. Explain auditing and internal control.

02 Accounting Principles

02 Accounting Principles MCQs
Q 2.1. The proprietor of a firm withdrew Rs. 56,000 for his personal use. This was shown as an expense of the firm. Profits were reduced to pay a lower tax. Is this right from accounting point of view? Justify your answer.
Q 2.2. Suppose the CEO of a company is killed in a plane crash…
Q 2.3. A company revalues its buildings which were purchased at a cost of Rs. 10,00,000 in 1995 to Rs. 90, 00,000 in 2010 and records the difference of Rs. 80, 00,000 as profit for the year 2003. Is this practice right? Give reasons.
Q 2.4. The accounting year of a firm closes on 31st December each year. The rent for business premises of Rs 45,000…
Q 2.5. A government contractor supplies stationery to various government offices. Some bills amounting to Rs. 10,000…
Q 2.6. A company had been charging depreciation on a machine at Rs. 10,000 per year for the first 3 years. Then it began charging Rs. 9,000 for 4th year and Rs. 7,800 for 5th year and so on. Is this practice justified? Give reasons for your answer.
Q 2.7. Indicate which of the following transactions relate to Mr. Keshav ‘s business as news agent and which are his personal transactions?
Q 2.8. At the end of the year 2012, an organisation had a factory on a piece of land measuring 10 acres…
Q 2.9. Using realization concept, offer your comments on recording following transactions in the books of accounts:

03 Presentation of Financial Statements : Balance Sheet

04 The Income Statements

05 Mechanics of Accounting

05 Mechanics of Accounting (MCQ)
Q 5.1. What are the types of accounts? Give appropriate examples.
Q 5.2. Write a note on double entry book keeping system.
Q 5.3 What are the rules for debit and credit?
Q 5.4. Explain accounting cycle in brief.
Q 5.5. Distinguish between journal and ledger.
Q 5.6. What is trial balance? Explain its features.
Q 5.7. What are the errors in trial balance? Explain with appropriate examples.
Q 5.8. Explain the necessity of preparing Bank Reconciliation Statement.

06 Fixed Assets and Depreciation Accounting

07 Company Accounts : Accounting for Shares and Debentures

08 Company Accounts : Financial Statements

09 Cash Flow Statement

09 Cash Flow Statement (MCQs – Select the best alternative for the given statement.)
Q 9.1. What is Cash Flow Statement? Explain its importance.
Q 9.2. Define cash and cash equivalents. Give some examples.
Q 9.3. Explain cash from operating activities with suitable examples.
Q 9.4 Distinguish between cash from investing and financing activities.
Q 9.5. Explain the concept of Free Cash Flow statement.
Q 9.6. Distinguish between Cash Flow Statement and Fund Flow Statement.
Q 9.7. What are Non-cash items?

10 Financial Statement Analysis

10 Financial Statement Analysis (MCQs)
Q 10.1. What is Financial Statement Analysis? Explain various techniques to conduct Financial Statement Analysis. Meaning of Financial Statement Analysis:
Q 10.2. What is ratio analysis? Explain its advantages and disadvantages.
Q 10.3. What do you mean by liquidity ratios? How do they differ from solvency ratios?
Q 10.4. Write a note on: a) Profitability ratios:
Q 10.4. Write a note on: b) Turnover ratios:
Q 10.4. Write a note on: c) Return ratios:
Q 10.5. Which ratios are used by shareholders and potential investors? Explain them in detail.
Q 10.6. What is working capital management? Also explain convergence cycle.

11 Cost Accounting : Concepts and Methods

Q 11.1. What do you understand by cost accounting? State its objectives.
Q 11.2. What do you understand by cost? Explain its different elements.
Q 11.3. “Fixed costs are variable per unit, while variable costs are fixed per units”. Comment.
Q 11.4. Discuss the importance of estimating in job costing.
Q 11.5. What do you understand by ‘Batch’ type of industries? What are the basic principles of batch costing?
Q 11.6. Discuss the nature of contract costing and explain the procedure of recording costs in contract costing.
Q 11.7. Discuss the distinguishing features of process costing.
Q 11.8. What do you understand by ‘normal loss’ and ‘abnormal loss’? How would you treat them in process cost accounts?

Course Content

01 Introduction to Financial Accounting

01 Introduction to Financial Accounting MCQs

Q 1.1. What is accounting? What is its importance?

Q 1.2. Write a note on evolution of accounting.

Q 1.3. Who are users of financial statements?

Q 1.4. Explain in brief. Distinguish between – a. Financial and cost accounting :

Q 1.4. Explain in brief. Distinguish between – b. Financial and management accounting :

Q 1.4. Explain in brief. Distinguish between – c. Cost and management accounting :

Q 1.5. Explain accounting as academic discipline.

Q 1.6. Write a note on – a. Finance function and accounting :

Q 1.6. Write a note on – b. Accounting profession as a career :

Q 1.7. Write a note on ethical issues in accounting.

Q 1.8. Explain relationship between corporate governance and accounting.

Q 1.9. Explain auditing and internal control.

02 Accounting Principles

02 Accounting Principles MCQs

Q 2.1. The proprietor of a firm withdrew Rs. 56,000 for his personal use. This was shown as an expense of the firm. Profits were reduced to pay a lower tax. Is this right from accounting point of view? Justify your answer.

Q 2.2. Suppose the CEO of a company is killed in a plane crash…

Q 2.3. A company revalues its buildings which were purchased at a cost of Rs. 10,00,000 in 1995 to Rs. 90, 00,000 in 2010 and records the difference of Rs. 80, 00,000 as profit for the year 2003. Is this practice right? Give reasons.

Q 2.4. The accounting year of a firm closes on 31st December each year. The rent for business premises of Rs 45,000…

Q 2.5. A government contractor supplies stationery to various government offices. Some bills amounting to Rs. 10,000…

Q 2.6. A company had been charging depreciation on a machine at Rs. 10,000 per year for the first 3 years. Then it began charging Rs. 9,000 for 4th year and Rs. 7,800 for 5th year and so on. Is this practice justified? Give reasons for your answer.

Q 2.7. Indicate which of the following transactions relate to Mr. Keshav ‘s business as news agent and which are his personal transactions?

Q 2.8. At the end of the year 2012, an organisation had a factory on a piece of land measuring 10 acres…

Q 2.9. Using realization concept, offer your comments on recording following transactions in the books of accounts:

03 Presentation of Financial Statements : Balance Sheet

03 Presentation of Financial Statements : Balance Sheet (MCQ)

Q 3.1. What is Balance Sheet? Why is it needed?

Q 3.2. Explain Balance Sheet Equation.

Q 3.3. What do you mean by Assets? How do you classify them?

Q 3.4. What do you mean by Liabilities? How do you classify them?

04 The Income Statements

04 The Income Statements (MCQ)

Q 4.1. Define revenue and its recognition.

Q 4.2. Write short notes on : (a) Accrual concept:

Q 4.2. Write short notes on : (b) Realization concept:

Q 4.3. Explain the concept of matching of revenue and expenses.

Q 4.4. Distinguish between Manufacturing and Trading Account.

Q 4.5. Distinguish between Profit and Loss and Profit and Loss Appropriation Account.

05 Mechanics of Accounting

05 Mechanics of Accounting (MCQ)

Q 5.1. What are the types of accounts? Give appropriate examples.

Q 5.2. Write a note on double entry book keeping system.

Q 5.3 What are the rules for debit and credit?

Q 5.4. Explain accounting cycle in brief.

Q 5.5. Distinguish between journal and ledger.

Q 5.6. What is trial balance? Explain its features.

Q 5.7. What are the errors in trial balance? Explain with appropriate examples.

Q 5.8. Explain the necessity of preparing Bank Reconciliation Statement.

06 Fixed Assets and Depreciation Accounting

06 Fixed Assets and Depreciation Accounting (MCQ)

Q 6.1. What are fixed assets? How to determine cost of fixed assets?

Q 6.2. What is depreciation? Is it necessary to provide for the same?

Q 6.3. Distinguish between SLM and RBM methods of depreciation?

Q 6.4. What is Asset impairment? Why is it necessary to provide for the same?

07 Company Accounts : Accounting for Shares and Debentures

07 Company Accounts : Accounting for Shares and Debentures (MCQs)

Q 7.1. What is company? Explain its What is company? Explain its characteristics.

Q 7.2. What are different types of companies?

Q 7.3. Explain different types of shares.

Q 7.4. What procedure is to be followed for issue of shares by company?

Q 7.5. Define debentures and explain different types of debentures.

08 Company Accounts : Financial Statements

09 Cash Flow Statement

09 Cash Flow Statement (MCQs – Select the best alternative for the given statement.)

Q 9.1. What is Cash Flow Statement? Explain its importance.

Q 9.2. Define cash and cash equivalents. Give some examples.

Q 9.3. Explain cash from operating activities with suitable examples.

Q 9.4 Distinguish between cash from investing and financing activities.

Q 9.5. Explain the concept of Free Cash Flow statement.

Q 9.6. Distinguish between Cash Flow Statement and Fund Flow Statement.

Q 9.7. What are Non-cash items?

10 Financial Statement Analysis

10 Financial Statement Analysis (MCQs)

Q 10.1. What is Financial Statement Analysis? Explain various techniques to conduct Financial Statement Analysis. Meaning of Financial Statement Analysis:

Q 10.2. What is ratio analysis? Explain its advantages and disadvantages.

Q 10.3. What do you mean by liquidity ratios? How do they differ from solvency ratios?

Q 10.4. Write a note on: a) Profitability ratios:

Q 10.4. Write a note on: b) Turnover ratios: