Fin621 Final Term Current Paper (Feb 2011)

Fin621 Final Term Current Paper (Feb 2011)

1) Difference b/w Operating and Accounting Cycle.

2) Big Financial Challenge in the Managing a company operating cycle.

3) Why P/E Ration generally higher during low inflation.

4) Question to find out the Relative Liquidity of the Company.

5) Short Term liquidity of Companies.

6) Question of Microsoft from Past Papers.

7) Find out Cash Flow from Operating Activities using Indirect Method.

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Another Paper:

1) Why revenue a/c is credited & expense a/c debited? Give reason.

2) Find quick assets & total current assets.

3) Find return on assets

4) In financial statement, what is the basic objective of data n ratio?

5) If u buy an inventory for 20,000 what'll be effect on new working capital.

6) Which 1 has lowest value cash ratio, quick ratio, current ratio, give reason also

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Another Paper:

69 question.

subjective portion

Question#1 : How horizontal analysis minimizes the problems of vertical analysis? 3 marks

Question#2 : Why stock holder preferred earning per shares rather then net income? 3 marks

Question#3 : Effect on working capital if assets increase 2% but no change in liabilities? 3 Marks

Question#4 (5marks)

Cash receive = 240000Rs.
Interest and dividend receive = 50000
Proceeds from sale of plant = 330000
Cash paid to supplier and employee = 127000
Cash paid for investment = 45000
Cash paid in treasury stocks = 36000
Net cash flow from operating activities=?????

Question#5 (5marks)

Year 1
Year2

Avg account receivable 

400000

416000

Credit sales

260000

310000

Net 30 days

Inventory receivable turnover ratio =????

Question#6 (5marks)

Net sales receive = 1850000

Net income = 180000

Interest expense = 120000

Interest paid = 140000

Tax expense = 30000

Cash flow from operating activates = 2300000

Time interest earned =?????

Question#7 (5marks)

Year 1
Year 2
Sales

570000

680000

Cost of good sold

200000

170000

Gross profit 

-------

expense

100000

210000

EBIT

270000

300000

Find % change from year 1 to year 2

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Another Paper:

62 mcqs

Q no 63.: Is it necessary for a company having machinery & a building to pass adjusting entries? (3)

Q no 64.
Co A has a current ratio 3:1
Co B has a current ratio 2:1
Has Co A more higher operating cycle than Co B? If it is then why? (3)

Q no 65: What do creditors of the firm can derive out of Balance Sheet of the firm…….? (3)

Q no 66: Some data was given and then I was asked to calculate ROE of a firm…………(5)

Q no 67: Suppose I am the Finance Manager of a firm and my 2 customers are interested in
doing investment then
1st customer is interested in that firm who's market value of the share is higher and
2nd customer is interested in investing in that firm who's profit of that year is higher…………..
Being a professional, what advise can I give to both the customers and why? (5)

Q no 68: Following are some ratios
Cash Ratio
Current Ratio
Quick Ratio
Which ratio has the lower value among all & why…………(5)

Q no 69: Some uncorrected transactions were given and I was supposed to correct them with figures and I was also asked to write the adjusting rule by the accounting standard………….(5)