2019 (May)
COMMERCE (Speciality)
Course:
602 (Financial Statement Analysis)
Time:
3 hours
The
figures in the margin indicate full marks for the questions
(NEW
COURSE)
Full
Marks: 80
Pass
Marks: 24
1. (a) State whether the following statements are True or
False: 1x4=4
1)
Valuation of unsold stock depends on the
personal judgement of the accountant.
2)
Earning yield ratio is the relationship between
earning per share and the market value of per share.
3)
Clause 49 of the Listing Agreement consists of
mandatory provisions only.
4)
CRR stands for Cash Reserve Ratio.
(b) Fill in the blanks with appropriate word(s): 1x4=4
1)
Creditors are always interested in knowing the
_______ (financial soundness / earning capacity / solvency position) of the
business.
2)
Liquid asset is computed by deducting _______
(cash / debtors / stock and prepaid expenses).
3)
Reporting of corporate governance reflects
_______ (socio-economic status / company management / economic status).
4)
Cash certificates are _______ (time liabilities
/ demand liabilities / time and demand liabilities).
2. Write short notes on any four of the following: 4x4=16
a) Common-size
income statement.
b) Statement
of changes in financial position.
c) Activity
ratios.
d) Corporate
social responsibility reporting.
e) Statutory
liquidity ratio (SLR).
f) Non-banking
financial company (NBFC).
3. (a) What is financial statement analysis? State the
significance of analysis of financial statements in respect to stakeholders of
the company. 4+10=14
Or
(b) Following are the two Ledger Balances A Ltd. and B Ltd. as
on 31st March, 2017:
Cr. Balances
|
A Ltd. Rs.
|
B Ltd. Rs.
|
Dr. Balances
|
A Ltd. Rs.
|
B Ltd. Rs.
|
Sundry Creditors
Other Current Liabilities
Fixed Liabilities
Capital
|
42,000
78,000
2,25,000
6,58,000
|
1,54,000
62,000
3,18,000
4,93,000
|
Cash
Sundry Debtors
Stock
Prepaid Expenses
Other Current Assets
Fixed Assets (net)
|
27,000
2,20,000
1,00,000
11,000
10,000
6,35,000
|
72,000
2,26,000
1,74,000
21,000
21,000
5,13,000
|
10,03,000
|
10,27,000
|
10,03,000
|
10,27,000
|
From the above data, prepare a common-size statement
and make comments. 7+7=14
4. (a) “Ratio analysis is a tool of financial statement
analysis for identifying financial strength, weakness and growth of an
enterprise in a simple and understandable form to the interested parties.”
Discuss. 14
Or
(b) Describe with illustration of the
following: 3.5x4
= 14
1)
Debt to equity ratio.
2)
Current ratio.
3)
Operating ratio.
4)
Inventory turnover ratio.
5. (a) What do you mean by financial reporting? Discuss its
main qualitative characteristics which make financial reporting more reliable
to its users. 4+10=14
Or
(b) Discuss the new standards of Corporate
Governance under the Companies Act, 2013. 14
6. (a) Discuss the provisions of Banking Regulation Act, 1949
relating to Financial Statement of banking company. 14
Or
(b) What is non-banking financial company?
Discuss the RBI guidelines on regulatory framework of NBFC. 4+10=14
(OLD
COURSE)
Full
Marks: 80
Pass
Marks: 32
1. (a) Fill in the blanks with appropriate word(s): 1x4=4
1)
Financial statements are _______ (recorded facts
/ estimated facts / anticipated facts).
2)
Static analysis takes the data for _______ (one
year / two years / three years).
3)
Net capital employed _______ [all assets –
current liabilities / all assets (excluding fictitious assets) – current
liabilities / current assets – current liabilities].
4)
International Accounting Standard-2 associated
with _______ (cash flow statement / inventories / revenues).
(b) State whether the following statements
are True or False: 1x4=4
1)
Cash flow statement is a part of financial
statement.
2)
Economic value added helps to measure the
performance of business.
3)
CSR policy does not include the activities
relating to promotion of gender equality and empowering women.
4)
Section 24 of Banking Regulation Act, 1949
specifies the requirement of maintenance of cash reserve ratio.
2. Write short notes on any four of the following: 4x4=16
a)
Indian accounting standard.
b)
Balance Sheet ratios.
c)
Sustainability reporting.
d)
NBFC.
e)
Demand and time liabilities.
f)
Insurance contracts.
3. (a) “Analysis of financial statements is the best way to
judge the overall financial health of a company.” Explain the statement with
your justification. 12
Or
(b) What is common-size income statement? State the steps for
preparation of common-size income statement.
4+8=12
4. (a) Describe the principle ratios which you consider
significant while interpreting the financial statement of a company and explain
the inferences which may be drawn from them. 11
Or
(b) The following information is given about
PD Ltd. for the year ended 31st March, 2017:
Current ratio
Acid-test ratio
Current liabilities
|
2.5 : 1
1.5 : 1
Rs. 50,000
|
Find out –
1) Current
assets;
2) Liquid
assets;
3) Inventory. 4+3+4=11
5. (a) Define financial reporting. What are the benefits
derived from financial reporting? 4+7=11
Or
(b) What is corporate social responsibility reporting? Explain
the present legal provisions of corporate social responsibility and its reporting
practices in India. 4+7=11
6. (a) What are Accounting Standards? Why is it necessary to
convergence the Indian GAAP with IFRS in Indian accounting practices? 3+8=11
Or
(b) What is international financial reporting standard (IFRS)?
What are the differences between IFRS and AS? 3+8=11
7. (a) Discuss all the important provisions of Banking
Regulation Act, 1949 for Banking Companies. 11
Or
(b) Write brief note on IRDA. Discuss the impacts of IFRS on insurance
industry in India. 3+8=11
Financial Statements Analysis Question Papers Dibrugarh University
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