Test Papers / Previous Question Papers of IGNOU CS54 Finance & Accounting on Computers December 2001

ADCA / MCA (II Yr)
Term-End Examination

December, 2001

CS-54 : Finance & Accounting on Computers

Time: 3 hours
Maximum Marks: 75

Note : There are 6 questions in the paper. Question no. 1 is compulsory and carries 35 marks. From the remaining attempt any two questions. Each of these carries 20 marks.

1.
(a) Explain in about lines each, the following terms : 30
(1) Cost Accounting
(2) Finance Officer
(3) Continuity/going concern concept
(4) FIFO & LIFO method, of inventory valuation.
(5) Liquidity ratios.

(b) What would be the adverse consequences of inadequate working capital ?

(c) Distinguish between Straight Line and Written Down methods of providing depreciation. Illustrate by an example. 30

2.
(a) Regent Ltd., has a sales revenue of Rs 10,000/- and depreciation for the period is Rs 2,000. The other expenses are Rs 9,000.
(1) What would be the net loss for the period ?
(2) What is the amount of funds generated from operations during the period ?
(3) Under what circumstances can the funds from operations be zero ? 7


(b) Premier Ltd. Produces a standard article. The results of the last four quarters of the year 2000 are as follows :

Quarters 		Output (unit)
I		1000
II		1500
III		2000
IV		3000

The cost direct material is Rs 30 and direct labour is Rs 20 per unit. Variable expenses are Rs 10 per unit. Fixed expenses are Rs 6,000 per annum.
(i) Find out full cost percent for each quarter.
(ii) Find out BEP (Break Even Point) in units for each quarter if selling price is Rs 100 per unit and the entire output is sold

3. Distinguish between direct labour rate variance and direct labour efficiency variance. What causes any lead to direct labour efficiency variance ? (15)

4.
(a) What is a flexible budget and how is it different from fixed budget ? Explain the utility of Computers in preparing budget. (15 m)

5. An appropriate capital structure reflects certain features. What are base features. Discuss briefly. 15

6.
(a)
The following facts, relate to Excel Ltd., :
Current ratio : 2.7
Quick ratio : 1.8
Current liabilities : Rs 6,00,000
Inventory turnover : 4 times

What would be the sales of the company ? 8

(b) What is rotation on equity and how do you measure it ? 7