JNTU
JNTU MCA 2019 ACCOUNTING AND FINANCIAL MANAGEMENT Previous Question Paper (April/May - 2019 - R13)
Part A is compulsory which carries 20 marks. Answer all questions in Part A. Part B consists of 5 Units. Answer any one full question from each unit. Each question carries 8 marks and may have a, b, c as sub questions.
PART - A
What is double entry system of accounting? What are its benefits?
Answer
The double entry system is an accounting method where every financial transaction affects at least two accounts, ensuring that for every debit entry, there is an equal and corresponding credit entry. This maintains the fundamental accounting equation: Assets = Liabilities + Equity. Its benefits include providing a complete record of transactions, facilitating the preparation of accurate financial statements, enabling the detection of errors through trial balance, and preventing fraud by providing an audit trail.
What is the meaning of weighted average of cost of capital?
Answer
The Weighted Average Cost of Capital (WACC) represents the average rate of return a company is expected to pay to all its security holders to finance its assets. It is calculated by multiplying the cost of each capital component (equity, debt, preferred stock) by its proportional weight in the total capital structure and summing the results. It serves as the minimum return a company must earn on its existing asset base to satisfy its creditors, owners, and other providers of capital.
What is solvency? State two of the important solvency ratios.
Answer
Sign in to view the complete answer paper.
What is a sales budget? What is its significance to other budgets?
Answer
Sign in to view the complete answer paper.
What are the advantages and disadvantages of Payback period method in capital budgeting?
Answer
Sign in to view the complete answer paper.
PART - B
State under what heading (Personal, Real, or Nominal) would you classify each of the following accounts: a) salary prepaid account, b) salary outstanding account, c) rent account, d) bank account, e) insurance unexpired, f) proprietor’s account, g) bad debts account, h) furniture account, i) goodwill account, j) patents account.
Answer
Sign in to view the complete answer paper.
The following balances are extracted from the books of Mr. Ajit Borkar. Prepare Trial Balance as on 31-12-2018.
Answer
Sign in to view the complete answer paper.
What are the various roles of finance manager in an organization?
Answer
Sign in to view the complete answer paper.
What are preference shares?
Answer
Sign in to view the complete answer paper.
Pradhan Enterprises is currently selling 400 units per year. If the selling price per unit is Rs.1,000, variable cost per unit is Rs.600, and fixed costs are Rs.1,00,000 what is Pradhan’s Degree of Operating Leverage at its current level of operations? What will be DOL, if the quantity manufactured and sold rises to 600 units?
Answer
Sign in to view the complete answer paper.
Complete the balance sheet and sales data (fill in the blanks) using the following financial data:
Answer
Sign in to view the complete answer paper.
Compute cash from operations from the given figures.
Answer
Sign in to view the complete answer paper.
Srikanth Glass Limited manufactures three different products P, Q and R. Calculate the break-even point for each product and for the company as a whole.
Answer
Sign in to view the complete answer paper.
Comparative financial data for the Evergreen Co. is given below. Prepare a funds flow statement.
Answer
Sign in to view the complete answer paper.
Pioneer Chemicals is evaluating system for waste disposal. System A has a life of 4 years. Initial outlay: 3.2 million, Annual operating costs: 1.2 million. If the cost of the capital is 12%, calculate the present value of total cost for the life of the waste disposal system at the discounted rate.
Answer
Sign in to view the complete answer paper.
What is IRR and how is it calculated?
Answer
Sign in to view the complete answer paper.
The cash flows in Rupees for three alternative A, B and C are provided. If the total funds availability is limited to Rs.5.5 Lakhs, which investments will you choose using Payback period approach?
Answer
Sign in to view the complete answer paper.