MANAGEMENT PROGRAMME Term-End Examination December, 2015 MS-4 : ACCOUNTING AND FINANCE FOR MANAGERS Time : 3 hours Maximum Marks : 100 Note : (i) Attempt any five questions. (ii) All questions carry equal marks. (iii) Use of calculators is allowed.
1. (a) Explain the 'Accrual Concept' and the 'Consistency Concept' in accounting and signify their importance to an accountant.
(b) Distinguish between 'Operating Profit' and 'Net Profit'. Which is a measure of operational efficiency of a company ? Distinguish between Capital expenditure and Revenue expenditure. Which is taken into account for determining the Operating Profit ?
2. What do you understand by Fund Flow Statement ? How does it differ from a Cash Flow Statement ? Explain the main items which are shown in the fund flow statement and the purpose of preparing this statement. 3. What do you understand by Discounted Cash Flow Techniques of Capital Budgeting ? Briefly explain the Net Present Value Method and Internal Rate of Return Method of appraisal of projects. Which of the two would you rank better and why ?
4. Distinguish between : (a) Profitability Index and Profitability Ratios. (b) Earnings Yield and Dividend Yield. (c) Fixed Budget and Flexible Budget. (d) Direct Labour Rate Variance and Direct Labour Efficiency Variance.
