1. Differentiate between Preliminary and Operating Expenses?
2. Compute the amount of gross profit and sales if opening stock is Rs. 60,000, Closing stock is Rs. 100,000, stock turnover is 8 times and goods are sold at a profit of 20% on sales.
3. State the meaning and significance of following ratios:- (a). Investment-Coverage Ratio and (ii). Price-earning ratio
4. The Debt-Equity ratio if a company is 1:2 which of the following transaction would increase decrease or not change the ratio: (a). Purchased fixed assets for Rs. 10,000 on long term deferred payment basis. (ii). Issued new equity shares of Rs. 50,000 and (iii). Paymsne of Rs. 20,000 of final dividend already declared.
5. Take and imaginary figures and draw a Cash Flow Statement?
6. Define the concept of Internal Reconstruction and provide accounting treatment for final settlement after reconstruction?
7. What are the statutory books and statistical books required to be maintained by a company?
8. Difference between Profit and Loss Account and Profit and Loss Appropriation Account?
Canada based company PUDO announces that effective February 29, 2016 it has completed a vertical short form amalgamation (the "Amalgamation") with its wholly-owned subsidiary My Courier Depot Inc. ("MCD") in order to reduce internal administration and financial reporting costs. Pursuant to the Amalgamation, all of the issued and outstanding shares of MCD will be cancelled and the assets, obligations and liabilities of MCD will be assumed by PUDO. No securities of PUDO will be issued in connection with the Amalgamation and the share capital of PUDO will remain unchanged. The Amalgamation will not have any significant effect on the business and operations of PUDO.
About PUDO Inc.
PUDO is the last mile delivery solution for parcel pick-up and drop-off services, ensuring reliable and secure delivery where you want it, when you want it. Using easily-accessible PUDO Point™ locations such as convenience stores, gas stations and grocery stores with extended hours, PUDO members, participating e-commerce retail consumers, businesses and a home-based workforce can now pick-up their parcels anytime, including evenings and weekends. PUDO eliminates the frustration of missed deliveries and gives control over parcel pick-up and delivery back to its members. With user-friendly technology, free membership and thousands of PUDO Point™ locations across Canada and the U.S., PUDO is changing the parcel delivery model in North America. PUDO was named one of the top 20 most innovative public technology companies by the Canadian Innovation Exchange in 2015.
This press release contains forward-looking statements. The use of any of the words "anticipate", "believe", "expect", "plan", "intend", "can", "will", "should", and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including but not limited to expectations and assumptions concerning the receipt of required regulatory approval. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
1. What the case is all about? Provide the brief summary?
2. Why no securities of PUDO will be issued in connection with the Amalgamation and the share capital of PUDO will remain unchanged. Comment?
3. What are your views about Press Release? How it looks as a forward-looking statement.
Question No. 1 Marks - 1
Claim against a DEBTOR for an uncollected amount, generally from a completed transaction of sales or services rendered.
- Accounts receivables
- A/cs Payables
Question No. 2 Marks - 1
……………… is a concept of complete removal of an amount due.
Question No. 3 Marks - 1
Funds used by a not-for-profit organization to account for all resources used for the development of a land improvement are …… projects funds.
Question No. 4 Marks - 1
Lease recorded as an asset acquisition accompanied by a corresponding liability by the lessee is ………… lease.
Question No. 5 Marks - 10
Brokerage firm account whose transactions are settled on a cash basis belongs to ………. Account.
Question No. 6 Marks - 1
Recording and reporting of financial transactions, including the origination of the transaction, its recognition, processing, and summarization in the final accounts.
- Annual Inspection
Question No. 7 Marks - 1
The sequence of steps followed in the accounting process to measure business transactions and transform the measurements into FINANCIAL TATEMENTS for a specific period.
- Accounting Cycle
- Trading Cycle
- Audit Cycle
Question No. 8 Marks - 1
The difference between the realistic interest and the interest actually used is referred to as………………... interest.
Question No. 9 Marks - 1
Mutual fund with a fixed number of shares outstanding that may be bought or sold iss ………. Fund.
Question No. 10 Marks - 1
Original cost of an asset to an entity is called ………………. Cost.
Question No. 11 Marks - 1
A ratio used to indicate the number of times a company´s average inventory is sold during an accounting period is ………….. Turnover ratio.
Question No. 12 Marks - 1
A financial term for a specific type of commodities planning and trading.
- Development Plan
Question No. 13 Marks - 1
Owner of property, the temporary use of which is transferred to another (LESSEE) under the terms of a LEASE.
- Asset owner
- Lease Owner
Question No. 14 Marks - 1
Any amount a corporation pays to a shareholder to directly or indirectly buy back its stock ………… mail.
Question No. 15 Marks - 10
Movement from public ownership to private ownership of a company´s shares either by the company’s repurchase of shares or through purchases by an outside private investor.
- Going Private
Question No. 16 Marks - 10
Group that has authority to establish standards of financial reporting for all units of state and local government.
Question No. 17 Marks - 10
Transferable agreement to deliver or receive during a specific future month a standardized amount of a commodity s called ………….. Contract.
- Surendered Contract
Question No. 18 Marks - 10
Person who takes on the risks of starting a new business.
Question No. 19 Marks - 10
Stock bonus plan of an employer that acquires SECURITIES issued by the plan sponsor.
Question No. 20 Marks - 10
Method of computing a deduction to ACCOUNT for a reduction in value of extractable natural resources is called…………….. .
- Demand Loan
- Account for
Question No. 21 Marks - 10
Account considered to be an offset to another account is …….. . Account.
Question No. 22 Marks - 10
The stockholders’ investment in a corporation is called ………….. Capital.
Question No. 23 Marks - 10
Annual interest on a bond divided by the market price is called …… yield.
Question No. 24 Marks - 10
Individual who has died is called…………….
- Financial Burden
Question No. 25 Marks - 10
Goods bought for personal or household use, as distinguished from capital goods or producer’s goods, which are used to produce other goods.
- Consumer Goods
- White goods
- Electronics Goods
- Tangible Goods
Question No. 26 Marks - 10
Transaction under which the LESSOR borrows funds to acquire property which is leased to a third party is ………… lease.
Question No. 27 Marks - 10
Winding up an activity by distributing its ASSETS to the appropriate parties and settling its debts.
- Window Dressing
Question No. 28 Marks - 10
Difference between current assets and current liabilities is called………….
- Net Profit
- Net Working Capital
- Gross Profit
Question No. 29 Marks - 10
Sales at gross invoice amounts less any adjustments for returns, allowances, or discounts taken.
- Net Sales
- Journal Sales
- Actual Sales
Question No. 30 Marks - 10
Written promise to pay a specified amount to a certain entity on demand or on a specified date.
- Advisoty Note
Question No. 31 Marks - 10
Oldest and largest stock exchange in the United States, located at 11 Wall Street in New York City; also known as the Big Board and The Exchange.
- Chicago Exchange
- World Exchange
Question No. 32 Marks - 10
Price per share at which a new or secondary distribution of securities is offered for sale to the public.
- offiring Price
- Open Price
- Current Price
- Market Price
Question No. 33 Marks - 10
Right to buy or sell something at a specified price during a specified time period.
- Put Option
- Call Option
Question No. 34 Marks - 10
All post-retirement benefits other than pensions, provided by employers to employees.
Question No. 35 Marks - 10
The ability to earn enough INCOME to attract and hold INVESTMENT capital.
Question No. 36 Marks - 10
The place in a factory where products are made.
- Supply Chain
- Product Line
- closed Circuit
Question No. 37 Marks - 10
Right giving existing stockholders the opportunity to purchase shares of a new ISSUE before it is offered to others.
- Green Right
- Bonus share
- White Right
Question No. 38 Marks - 10
Asset placed in a trust and used as collateral for a DEBT.
Question No. 39 Marks - 10
A small amount of CASH that a company keeps on hand to pay for minor expenses in an office.
- Petty Cash
- Open Cash
- current Cash
- Small Cash
Question No. 40 Marks - 10
Percentage of a firm’s profits that is paid out to shareholders in the form of dividends.
- Payout Ratio
- Retention Ratio
- Offer Ratio
- Distribution Ratio