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CS-54 : FINANCE & ACCOUNTING ON COMPUTERS

JUNE 2003

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) Human Resource Accounting

(ii) Matching Concept

(iii) Gross Profit

(iv) Financial Leverage

(b) Narrate the role of computers in accounting.

(c) What do you understand by Cash Flow Statement? What are the broad headings and important sub-classifications to be incorporated thereunder as per Accounting Standard?

2 How will you compute return on capital employed ? Explain with the help of imaginary figure, taking maximum possible items of Profit and Loss Account and Balance Sheet.

3 What are the factors that a financial manager would take into consideration while determining the working capital requirements of his firm ?

4 Explain the concept of Payback Period and Accounting Rate of Return. Discuss the limitations of both the methods.

5(a) What do you understand by cost accounting ? State its objectives.

(b) Rajkumar Ltd. provides you the following information:

You are required to calculate

(i) P/V ration

(ii) Fixed cost

(iii) Break-even sales volume

(iv) Sales to earn a profit of Rs. 3, 000 and

(v) Profit when sales are Rs. 8, 000.

6 Examine the utility of available softwares for performing accounting and finance functions. Put forth your suggestions for an ideal computerised system of accounting and finance.