IGNOU MCO-05 December 2015 Previous Year Question Paper

Q1.What do you understand by 'Financial Statements' ? Discuss the utility and significance of financial statements for the various parties interested in a business concern.

Q2.Explain trend ratios as a form of Trend Analysis.

Q3.Give also the examples of Trend Ratio Analysis.

Q4.What is cash flow statement ? Explain the various techniques of preparing cash flow statement. How does it help the management in decision making ? 5+10+5

Q5.Define 'Budget and budgeting'. Discuss its utility and limitations. 6+7+7

Q6.Explain the term variance. Write a short note on the classification of variances.

Q7.What is 'Activity Based Costing' ? How does it differ from traditional costing approach ?

Q8.Following are the Comparative Balance Sheets 20 of a company : Liabilities 31-12-12 31-12-13 Assets 31-12-12 31-12-13 Z Z Z Z Capital 7,000 7,400 Cash 900 780 Debenturers 1,200 600 Debtors 1,490 1,770 Trade Creditors 1,036 1,184 Stock 4,920 4,270 Bad Debts Provision 70 80 Building 2,000 3,000 P and L A/c 1,004 1,056 Goodwill 1,000

Q9.310 10,320 10,310 10,320 Additional information :

(a) Dividend were paid amounting to Z 350.

(b) Depreciation of Z 500 was provided for the year. You are required to prepare a Cash Flow Statement.

Q10.An organisation manufactures two varieties of 20 products A and B. The sales division of the company has three departments in different areas of the country. Prepare a sales budget for the year ended 31St December, 2013. Product A - X Department 3,00,000; Y Department 5,62,500; and Z Department 1,80,000. Product B - X Department 4,00,000; Y Department 6,00,000 and Z Department 20,000. Sales price is Z 6 and Z 2.40 in all departments. It is estimated that by forced sales promotion the sale of B in Department X will MCO-05 2 increase by 1,75,000. It is also expected that by increasing production and arranging extensive advertisement, Department. Z will be able to increase the sale of B by 50,000. It is recognised that estimated sales by Department Y represent an unsatisfactory target. It is agreed to increase both estimates by 20%.

Q11.From the following figures, calculate the break-even point in rupees as well as in units. 10+10 Sales 30,000 Fixed expenses 7,500 Direct materials 10,000 Direct labour 6,000 Direct expenses 4,000 Output (in units) 1,000 MCO-05 3 I TAkat --05 I qui61 ,04 4 triloch 11 ,t ZErrraT Tr1k TR* . fqtil'ei, 2015 TrA.311.-05 : Tr-er4zi iu q 'FMrltgiahi Firm :3 rk . 37NWUTT 373' :100 sTei Wi 70%

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