Financial Accounting & Analysis - Ms. Sandipa is the accounts executive for a company called SS Ente

Financial Accounting & Analysis

1. Ms. Sandipa is the accounts executive for a company called SS Enterprises. Her job description requires her to supervise the process of recording of the transactions of business and to ensure that all accounting assumptions are taken care of. However, her junior executive is confused about the concepts of the accounting period assumption and the Separate entity assumption.

Elaborate how Sandipa can explain the concepts to her junior with the help of suitable example.

2. Marry Kom is planning to invest in the share market. She has a profile of risk seeker investor but she believes that before investing it&rsquos important to understand market ratios effectively. Discuss any five market ratios with their importance that Marry Kom should look into before undertaking any investment decision.

3. The following information is available in relation to Britannia Baby Company. The Company has profit before taxes of Rs 50 lacs.

a. Classify and give reasons for the cash flows falling under the operating activities.

b. Classify and give reasons for the cash flows falling under the investing activities.

Particulars

Amount

Rs in Lacs

Tangible assets purchased during the year

75

Depreciation charged on these tangible assets for the year @ 10%

Stock sold for the year

95

Loan given to Big Boy Company

150

Interest received from Big Boy company for the said loan @11.5%

Shares purchased of a company called as Arvind Mills

10

Dividend Received from Arvind Mills

1

Taxes paid for the year @ 30%

Financial Institutions and Markets

1. &ldquoPrimary Market helps to facilitate capital growth by enabling individuals to convert savings into investments. Describe in details the techniques that companies uses to raise the fresh capital from the primary market.

2. Explain why insurance sectors are considered as financial intermediary. Discuss any four types of insurance plans that are available in the market.

3. Ms. Goyal, after completing her graduation, recently joined a bank. With a steady income and good growth prospects for her career, she intends to save regularly and increase the amount of savings gradually over the years. Her colleagues in the bank have advised her investing in Mutual Funds MFs, as a suitable option for her. However, Ms. Goyal is not at all familiar with MFs. Advise Ms.Goyal with the below queries:

a. Explain brief on Mutual Funds and its features.

b. Enumerate any four types of Mutual Fund to Ms.Goyal.