PARUL – MBA – Accounting for Managers
Accounting for Managers
Q. 1 “Managers need to have an understanding to accounting.” Discuss the statement concerning users to accounting information. This illustrates that managers need to have an understanding of accounting principles, which is crucial for effective managerial duties.
Q. 2 Classify the following accounts under the traditional approach.
| Building | Capital |
| Purchases | Drawings |
| Sale | Personal Income-Tax account. |
| Rent | Interest Receivable account |
| Cash | Dividend Received |
| Trade Receivables | Discount Allowed |
Q. 3 From the following information, prepare a Common size Income Statement for the year ended March 31, 2016, and March 31, 2017. To make informed decisions, managers need to have an understanding of financial data.
Q.4 From the following data relating to the assets of the Balance Sheet of ABC Ltd., for the period ended March 31, 2011, to March 31, 2014, calculate trend percentages.
Q. 5 How can we calculate cash flow from operating activities? This is another area where managers need to have an understanding to evaluate business performance. Explain this with a hypothetical example.
Q. 6 Classify the following cash transactions into i) Cash from Operating Activity; ii) Cash from Investing Activity; iii) Cash from Financing Activity: –
1) Dividend paid to shareholders
2) Payment made to supplier
3) Interest income on Debenture
4) Dividend Received
5) Taxes Paid
6) Salary Paid
7) Purchase of Shares
8) Issue of Shares
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