Product Detail
Find out the Relevant Ratios Relating to SRK Co |
|
| University | Amity blog |
| Service Type | Assignment |
| Course | |
| Semester | |
| Short Name or Subject Code | Management Accounting |
| Product | of Assignment (Amity blog) |
| Pattern | Section A,B,C Wise |
| Price | Click to view price |
Management Accounting
Explain the position of Management Accounting in the organization.?
Explain the analysis of Financial Statement along with the objective?
Elaborate any 3 types of liquidity ratio?
Section-B
Following information are available for SRK Co. along with various ratios relevant to the particular industry which it belongs.
Balance Sheet As at 31.03.2014
Liabilities Amount Assets Amounts
Equity Share Capital 2,400,000.00 Fixed Assests 1,210,000.00
10% Debenture 460,000.00 Cash 440,000.00
Sundry Creditors 330,000.00 Sundry Debtors 550,000.00
Bills Payable 440,000.00 Stocks 1,650,000.00
Other Current Liabilities 220,000.00
3,850,000.00 3,850,000.00
Statement of Profitability for the year ending 31.03.2014
Particulars Rs. Rs.
Sales 5,500,000.00
Less: Cost of Good Sold:
Material 2090000
Wages 1320000
Factory Overheads 649000 44,059,000.00
Gross Profit 1,441,000.00
Less: Selling and Distribution Cost 550000
Admin Cost 614000 1,164,000.00
Earning before Interest and Taxes 277,000.00
Less: Interest Charges 46,000.00
Earning before Taxes 231,000.00
Less: Tax @50% 115,500.00
Net Profit(PAT) 115,500.00
Industry Norms
Current Assets/Current liabilities 2.5
sales/Debtors 8.0
Sales/Stocks 9.0
Sales/Total Assets 2.0
Net Profit/Sales 3.5%
Net Profit/Total Assets 7.0%
Net Profit/ Net Worth 10.5%
Total Debt/Total Assets 60.0%
1.Find out the relevant ratios relating to SRK Co
2. Give your comments on Strengths and Weakness of SRK Co.
Compare its ratios with industry Norms.
Assignment C
Question No. 1 Marks - 10
________________________________________
Managerial accounting does not include
Options
Calculating product cost
Calculating earnings per share
Determining cost behavior
Profit planning.
Question No. 2 Marks - 10
________________________________________
Managerial accounting information is generally used by
Options
Shareholders
Creditors
Managers
Regulatory agencies
Question No. 3 Marks - 10
________________________________________
What helps in ascertaining costs beforehand
Options
Financial accounting
Cost Accounting
Management Accounting
None of Above
Question No. 4 Marks - 10
________________________________________
The scope of cost accounting include
Options
Cost ascertainment, cost presentation, cost control
Tax planning, tax accounting, financial accounting
Presentation of accounting information, creation of policy, day-to day operation
none of the above
Question No. 5 Marks - 10
________________________________________
Which one is not the limitation of the Management Accounting.
Options
Is only a Tool
Based on data provided by financial and cost accounting
Time consuming process.
None of the above.
Question No. 6 Marks - 10
________________________________________
Which of the following is not a technique of Financial Statement
Options
Comparative Financial Statements
Common Size Financial Statement
Ratio Analysis
None of the above
Question No. 7 Marks - 10
________________________________________
Which of the following ratio indicates the short-term liquidity of a business?
Options
Inventory Turnover Ratio
Debt-Equity Ratio
Acid Test Ratio
Proprietary Ratio.
Question No. 8 Marks - 10
________________________________________
Which of the following is true when a debtor pays his dues?
Options
The asset side of the balance sheet will decrease
The asset side of the balance sheet will increase
The liability side of the balance sheet will increase
There is no change in total asset or total liability
Question No. 9 Marks - 10
________________________________________
An income statement reports a business's financial___
Options
Condition over a specific period of time
Condition on a specific date
Progress over a specific period of time
Progress over a specific date
Question No. 10 Marks - 10
________________________________________
The sections of Income Statements are
Options
Assets, liabilities, and owner's equity
Heading, revenue, expenses, and net income or net loss
Assets, liabilities, and net income or net loss
Assets, revenue, and net income or net loss
Question No. 11 Marks - 10
________________________________________
Accounting Ratios are important tools used by
Options
Managers
Researchers
Investors
All of the above
Question No. 12 Marks - 10
________________________________________
DU PONT Analysis deals with:
Options
Analysis of Current Assets
Analysis of Profit
Capital Budgeting
Analysis of Fixed Assets
Question No. 13 Marks - 10
________________________________________
SRK Ltd. has a Current Ratio of 3: 2 and Net Current Assets of Rs. 5,00,000.What are the current assets.
Options
5,00,000
10,00,000
15,00,000
25,00,000
Question No. 14 Marks - 10
________________________________________
Debt to Total Assets Ratio can be enhanced by
Options
Borrowing new
Issue of Debentures
Issue of Equity Shares
Redemption of Debt
Question No. 15 Marks - 10
________________________________________
Which of the following statements is correct?
Options
A Higher Receivable Turnover is not desirable
Interest Coverage Ratio depends upon Tax Rate
Increase in Net Profit Ratio means increase in Sales
Lower Debt-Equity Ratio means lower Financial Risk
Question No. 16 Marks - 10
________________________________________
Capital Budgeting is a part of
Options
Investment Decision
Working Capital Management
Marketing Management
Capital Structure
Question No. 17 Marks - 10
________________________________________
Capital Budgeting deals with
Options
Long-term Decisions
Short-term Decisions
Both (a) and (b)
Neither (a) nor (b)
Question No. 18 Marks - 10
________________________________________
Which of the following is not used in Capital Budgeting?
Options
Time Value of Money
Sensitivity Analysis
Net Assets Method
Cash Flows
Question No. 19 Marks - 10
________________________________________
Capital Budgeting Decisions are
Options
Reversible
Irreversible
Unimportant
All of the above
Question No. 20 Marks - 10
________________________________________
A sound Capital Budgeting technique is based on
Options
Cash Flows
Accounting Profit
Interest Rate on Borrowings
Last Dividend Paid
Question No. 21 Marks - 10
________________________________________
Cash Budget does not include
Options
Dividend Payable
Postal Expenditure
Issue of Capital
Total Sales Figure
Question No. 22 Marks - 10
________________________________________
Which of the following is not true of cash budget?
Options
Cash budget indicates timings of short-term borrow¬ing.
Cash budget is based on accrual concept.
Cash budget is based on cash flow concept.
Repayment of principal amount of law is shown in cash budget.
Question No. 23 Marks - 10
________________________________________
Budgetary control involves all but one of the following:
Options
Modifying future plans
Analyzing differences
Using static budgets
Determining differences between actual and planned results
Question No. 24 Marks - 10
________________________________________
Under responsibility accounting, the evaluation of a manager’s performance is based on matters that the manager
Options
Directly controls
Directly and indirectly controls
Indirectly controls
Has shared responsibility for with another manager
Question No. 25 Marks - 10
________________________________________
Responsibility centers include
Options
Cost centers
Profit centers
Investment centers
All of the above
Question No. 26 Marks - 10
________________________________________
Which of the following is NOT a cash outflow for the firm
Options
Depreciation
Dividends
Interest payments
Taxes
Question No. 27 Marks - 10
________________________________________
Which of the following would be considered a use of funds
Options
A decrease in accounts receivable
A decrease in cash
An increase in account payable
An increase in cash
Question No. 28 Marks - 10
________________________________________
For a profitable firm, total sources of funds will always total uses of funds
Options
Be equal to
Be greater than
Be less than
Have no consistent relationship to
Question No. 29 Marks - 10
________________________________________
Which of the following would be included in a cash budget?
Options
Depreciation charges
Dividends
Goodwill
Patent amortization
Question No. 30 Marks - 10
________________________________________
Uses of funds include a
Options
Decrease in cash
Increase in any liability
Increase in fixed assets
Tax refund
Question No. 31 Marks - 10
________________________________________
Which of the following is not an advantage of Budgets
Options
It brings about efficiency and improvement in the working of the organization
It serves as a benchmark for controlling on-going operations
It does not focus on comparing of the results.
All of the above
Question No. 32 Marks - 10
________________________________________
The Process of Budgetary control includes
Options
Revision of budgets in the light of changed circumstances
Continuous comparison of actual performance with budgetary performance
Both (a) and (b)
Neither (a) nor (b)
Question No. 33 Marks - 10
________________________________________
Which of the following is not the advantage of Budgetary control
Options
Less time and Cost.
Controlled Action
Performance Evaluation
Helps in co-ordination
Question No. 34 Marks - 10
________________________________________
Which of the following is problem in budgeting
Options
Bad labor relations
Inaccurate record-keeping
Disputes over resource allocation
All of the above.
Question No. 35 Marks - 10
________________________________________
The investment in total current assets is known as
Options
Gross working capital
Permanent working capital
Temporary working capital
Net working capital
Question No. 36 Marks - 10
________________________________________
An accounting system wherein the operations are broken down into cost centers controllable by a foreman, sales manager, or supervisor, is known as
Options
Control accounting
Budgetary accounting
Responsibility accounting
Allocated cost accounting
Question No. 37 Marks - 10
________________________________________
The basic difference between a static budget and a flexible budget is that
Options
Flexible budget considers only variable costs, but a static budget considers all costs.
Flexible budgets allow management latitude in meeting goals, whereas a static budget is based on a fixed standard.
A static budget is for an entire production facility, but a flexible budget is applicable only to a single department.
A static budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range.
Question No. 38 Marks - 10
________________________________________
Important factors consider for sales budget are
Options
Past pattern of sales
Marketing research studies
Competitors Activity
Desire level of sales
Question No. 39 Marks - 10
________________________________________
The Real Cashflows must be discounted to get the present value at a rate equal to
Options
Money Discount Rate
Inflation Rate
Real Discount Rate
Risk free rate of interest
Question No. 40 Marks - 10
________________________________________
Risk in Capital budgeting is same as
Options
Uncertainty of Cash flows
Probability of Cash flows
Certainty of Cash flows
Variability of Cash flows