QB ACC UNIT 1-5

Unit 1: Accounting for Managers

Level A. Easy Questions (2 marks each)

  • Q1: Primary purpose of recording business transactions in accounting?

  • Q2: Objective of preparing a Trial Balance?

  • Q3: Difference between Trial Balance and Balance Sheet?

  • Q4: Define capital expenditure.

  • Q5: What does it mean when a Trial Balance is said to "balance"?

  • Q6: Define a Cash Flow Statement in accounting; explain its primary purpose.

  • Q7: Importance of classifying income and expenditure in financial statement preparation.

  • Q8: Explain return inward and return outward.

  • Q9: Calculate Capital given total assets and liabilities.

  • Q10: State the fundamental accounting equation and explain its components.

  • Q11: Effect of asset changes on the accounting equation.

  • Q12: Effect of liability increases on the accounting equation.

  • Q13: Explain real accounts and examples.

  • Q14: Provide Trading and Profit & Loss Account and Balance Sheet formats.

  • Q15: Differences between personal, real, and nominal accounts.

  • Q16: Discuss two uses of ratios.

  • Q17: Journalize business startup details of Ram's transaction.

  • Q18: Distinguish between income statement and balance sheet.

Level B. Intermediate Questions (5 marks each)

  • Q19: Key uses of Cash Flow Statement for businesses and investors.

  • Q20: Draw the proper ledger format in accounting.

  • Q21: Differences between Managerial and Financial Accounting.

  • Q22: Explain the modern classification accounting system.

  • Q23: Prepare trading account from the presented ledger balances.

  • Q24: Impact of a company's asset increase on the accounting equation with explanation.

  • Q25: Journalize the purchase of goods and subsequent insolvency of Mr. Kamal.

  • Q26: Steps involved in recording business transactions from documents to ledger.

  • Q27: Uses of Cash Flow Statement in decision-making.

  • Q28: Activities in a cash flow statement as per AS(3); explain "CCE".

  • Q29: Explain modern classification accounting system.

Level C. Difficult Questions (10 marks each)

  • Q30: Journalize transactions for business startup and depreciation.

  • Q31: Present transactions of a sole proprietor as per accounting equation.

  • Q32: Journal entries for Ananth's textile trading transactions.

  • Q33: Prepare Trial Balance from Mr. Jaydeep's ledger balances.

  • Q34: Prepare trading and profit & loss account along with balance sheet after adjusting for closing stock.

  • Q35: Importance of forecasting and budgeting in management decisions.

Unit 2: Accounting for Managers

Level A. Easy Questions (2 marks each)

  • Q1: Define fixed costs. Provide an example.

  • Q2: Differentiate between direct and indirect costs.

  • Q3: Define variable cost.

  • Q4: Formula for calculating the contribution margin.

  • Q5: Define break-even point.

  • Q6: What is margin of safety?

  • Q7: Explain job order costing.

  • Q8: Features of process costing.

  • Q9: Define cost allocation.

  • Q10: Basic principle of Activity-Based Costing (ABC).

  • Q11: Calculate contribution margin based on provided costs.

  • Q12: Principles of job costing.

  • Q13: Meaning of Cost driver.

  • Q14: Formula of activity cost driver rate.

  • Q15: Define opportunity cost.

  • Q16: Usefulness of cost accounting for management.

  • Q17: Draw total cost, fixed cost, and variable cost on a graph.

  • Q18: What is sunk cost? Give an example.

  • Q19: What is shutdown cost? Provide an example.

  • Q20: Differentiate between implicit and explicit costs.

Level B. Intermediate Questions (5 marks each)

  • Q21: Importance of cost classification in managerial decision-making.

  • Q22: Differences between job order costing and process costing with examples.

  • Q23: Calculate break-even point based on fixed and variable costs.

  • Q24: Discussion on cost-volume-profit (CVP) analysis in decision-making.

  • Q25: Allocation of factory overhead using ABC approach.

  • Q26: Role of cost allocation in achieving accurate costing.

  • Q27: How margin of safety helps in analyzing risk, with examples.

  • Q28: Calculation of cost driver rates based on provided activity data.

Level C. Difficult Questions (10 marks each)

  • Q31: Significance and limitations of Cost-Volume-Profit (CVP) analysis.

  • Q32: Calculate break-even point and graph for a company based on provided financial data.

  • Q33: Calculate break-even point and margin of safety for provided costs.

  • Q34: Explain usage and assumptions of CVP analysis.

Additional Pages for Units 3-5

Similar structure of Easy, Intermediate, and Difficult Questions for respective units and topics:

  • For Unit 3: Definitions around capital budgeting, project valuation, financial ratios, and performance evaluation.

  • For Unit 4: Questions focusing on budgets, variance analysis, working capital management, and financial ratios.

  • For Unit 5: Questions regarding strategic cost management, sustainability, and ethics in accounting.

Note: Students should be instructed to draw well-labeled diagrams wherever necessary to support their answers, especially for level B and C questions.