PROBABLE QUESTIONS MODULE-I Short Questions Mention any two features of Accounting Which institution has issued Accounting

standards in India? What is AS-14? Which subsidiary book records the return of goods purchased on credit? What is meant by Business Entity Concept of Accounting? What is accounting cycle? Whether the following is a capital or revenue expenditure? i) Cost of repairs of second hand machine ii) Depreciation on fixed assets 7. In which side of the trial balance the following items appear? iii) Outstanding Salary iv) Drawings 8. What do you mean by Depletion? 9. What is contra entry? Give two examples. 10. Write two method of charging depreciation. 11. What do you mean by marshalling of assets and liabilities? 12. What do you mean by Direct Expenses? Give one example. 13. Give two examples of current assets. 14. What is a contingent liability? 15. In which side of the balance sheet these items will appear. Prepaid Insurance, ii) Outstanding Salaries Long Questions 1. What do you mean by Financial Accounting? Discuss the advantages and limitations of Financial Accounting. 2. What do you mean by generally accepted accounting principles (GAAP)? Briefly describe the different concept of accounting. 3. What is accounting equation? Briefly explain the effect of transactions in assets, liabilities and capital with examples. 4. Users of accounting information are different groups. Explain who are they with examples. 5. What is capital expenditure? How does it differ from revenue expenditure and deferred revenue expenditure? Give suitable examples. 6. What are the different methods of charging depreciation? Explain various methods of charging depreciation. 7. What are the different types of accounts are there? Explain with suitable examples. 8. Why it is necessary to maintain subsidiary books? Name five subsidiary books and there purpose. 9. What is the necessity of preparing trial balance? Draw up a format of trial balance with items. 1. 2. 3. 4. 5. 6.

10. How do you treat the following adjustments in the final accounts? I) Withdrawal of goods for personal use of the proprietor II) Goods lost by fire where insurance company does not admit the claim. 11. Draw up the format of Trading and Profit and Loss Account, Balance Sheet with imaginary figures.

MODULE-II Short Questions 1. 2. 3. 4. 5. 6. 7. 8. Write two differences between equity share and preference share. Name two types of debentures. What is forfeiture of shares. State the differences between authorized capital and issued capital. What do you mean by convertible debenture? What is ESOP? What is IPO? What is rights issue?

Long Questions 1. Distinguish between Debenture and Share. Also discuss the different types of debentures in Indian context. 2. What do you mean by forfeiture of shares? Write down the journal entries for forfeitures of shares issued at i) Par, ii) Discount iii) Premium. 3. What are the different types of capital of a joint stock company? Discuss each on in detail. 4. Discuss different types of preference shares and there features. 5. List down the different contents of the Directors report attached attached to balance sheet of a joint stock company. MODULE-III Short Questions 1. 2. 3. 4. 5. 6. Name three ratios which measure the liquidity of firm. List two limitations of financial ratios What is window dressing of financial statements? Name three types of cash flows. Give two examples of cash flow from investing activities Give two examples of cash flow from financing activities

Long Questions 1. Identify the three major types of activities classified on a cash flow statement and give example of cash inflow and cash outflow in each classification.

2. Discuss the procedure in preparing a cash flow statement. 3. List the common sources and uses of cash in activity area: operating, investing and financing. 4. Discuss the importance of financial ratios from view point of different users. 5. What is the key question in assessing the liquidity? What ratios are used in this regard? 6. Explain the followings: i) Liquidity Ratios ii) Profitability Ratios iii) Capital Structure Ratios