Objective questions 1. 1 Assets = Liability minus capital (true or false)-false 1. 2 Return is same as PAT (true or false)- true 1. 3 If Pat is 20 crores and average investment is 100 crores find out ROI. – 20% 1. 4 Prime cost plus office overheads is equal to cost of production (true or false)- false 1. 5 Write the formula of PV ratio- contribution/sales*100 1. 6 Write the formula of BEP in value- fixed cost/ Pv Ratio 1. 7 Write the formula of BEP in units- fixed cost/ contribution/unit 1. 8 How EBITDA is derived. -Sales- COGS-expenses= EBITDA . 9 Write the structure of cost sheet 1. 10 Write the structure of financial accounting to arrive at PAT 1. 11 Write the formula of PV ratio using delta. change in profit/change in sales 1. 12 Write break even chart and explain margin of safety. Actual sales- projected sales 1. 13 Present income tax rate for Indian companies is _30. 9__________ 1. 14 Cost of production = Prime cost + __factory overhead______________ & ___________________ 1. 15 If cost price is rupees 5000 and profit on sales is 25% find out sales and profit 1. 6 Total cost = Fixed cost + _______variable cost_________ 1. 17 Contribution = Profit + ____fixed cost___________
1.18 Write the balance sheet of a company with imaginary figures. 1. 19 Trial balance is a statement, where debit balances and credit balances of ledger accounts are written (true or false) true 1. 20 What is CAGR? Compound annual growth rate- 1. 21 Calculate CAGR with imaginary figures for 4 years. 2009-100 2010=120 2011-130 2012-140 So (140/100)^(1/4)-1 1. 22 If a company purchases machinery then Purchase is debit and bank is credit (true or false) 1. 3 Correct the above if it is false 1. 25 If a company pays salary to employees then Employees is debit and salary is credit (true or false) 1. 26 Correct the above if it is wrong. 1. 27 Write two generic strategies as advocated by Michel Porter 1. 28 Briefly explain those strategies 1. 29 Briefly explain SDE Model 1. 30 List five profitability ratios 1. 31 List five turnover ratios 1. 32 If a company purchases raw material then Machinery is debit and raw material is credit (true or false) 1. 33 Correct the same if it is false
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1. 34 Rahul company ltd. purchases raw material on credit from Raja and sons then Purchases is debit and Raja and sons is credit (true or false) 1. 35 If false correct the same. 1. 36 Rahul company ltd. is a listed public company, having an average turnover of rupees 120 crores for the past three years. The company is pursuing credit policy of 60 days credit to the customers and management monitors the same regularly and religiously. Its average receivables for the past three years are 30 crores. Identify the problem, analyze and take informed decisions to rectify the problem. 1. 7 If a company sells goods on credit to Rao and sons then Bank is debit and sales is credit (true or false) 1. 38 Prepare a Trial balance with imaginary items (ten) 1. 39 Prepare a ledger account of sales with imaginary figures 1. 40 Fixed cost minus loss = __________________ 1. Actual sales= 80 cr. BEP Sales- 50 cr Find out MOS. If actual sales increases to 100 cr then what is the margin of safety? Solution= 30 cr, 50 cr. 2. Cp-5000 Profit- 25% Let sales be X X-25%=5000 75%= 5000 100%- 5000/75*100=6666. 67 (sales) So profit is 6666. 66-5000=1666. 66 (profit)