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CS-54 : FINANCE & ACCOUNTING ON COMPUTERS

JUNE 2002

 

Note : There are six questions in this paper. Question no. 1 is compulsory and carries 30 marks. From the remaining five questions attempt any three questions, each of which carries 15 marks.

 

1(a) Explain the following terms in about 10 lines each:

(i)   Accounting for price level changes

(ii)  Going Concern Concept

(iii) Net Profit After Tax

(iv) Opportunity Cost

(v)  Break-Even Point                                                                                                                                                 [10]

(b)  Discuss the importance of setting accounting standards.                                                                                          [10]

(c)  What are the factors influencing major investment decisions of a large corporation?                                                 [10]

 

2 Explain the latest and other important sources of long-term and short-term financing.                                                   [15]

 

3 Examine the relevance of marginal costing in the present-day context of global business environment, with suitable illustrations, comparing it with other techniques.                                                                                                            [15]

 

4 Elucidate the various cost reduction techniques, highlighting the importance of cost reduction under the present scenario. How is it different from cost control?                                                                                                                           [15]

 

5 How is a Funds Flow Statement prepared? Explain with the help of hypothetical figures taking an example.                  [15]

 

   6 “Accounting and finance functions should be handled with the help of computers and software packages.” Evaluate this statement critically.                                                                                                                                                       [15]