ca foundation
Types of Financing Question 1.Write short notes on following:Bridge Finance. (May 2006, Nov 2011, Nov 2016, 3, 2, 2 each marks)Answer:Bridge Finance:Meaningbridge finance ¡s a short-term loan taken by a firm from commercial banks to disperse loans sanctioned by financial institutions. Importance or Need for Bridge FinanceBridge finance as the name suggests bridges the time […]
Scope and Objectives of Financial Management Question 1.Explain the two basic functions of Financial Management. (Nov 2002, Nov 2009, 3 marks)Answer:The two basic functions of F.M. are1. Procurement of funds2. Effective use of these funds 1. Procurement of fundProcurement of funds includes: Identification of sources of finance Determination of finance mix Raising of funds Division […]
Computation of Total Income and Tax Payable Question 1.State under which heads the following incomes are taxable: Rental income in case of dealer in property. Dividend on shares in case of a dealer in shares. Salary by a partner from his partnership firm. Rental income of machinery. Winnings from lotteries by a person having the […]
Profits and Gains from Business or Profession Question 1.State with reason, whether the following statements are true, or false with regard to the provisions of the Income-tax Act, 1961 for the Assessment year 2021-22: [Nov. 2008, 2 Marks](a) Rural branches of the Cooperative banks are not allowed to claim provision for bad and doubtful debts.(b) […]
Budget and Budgetary Control 1. Budgetary Control: It is the system of management control and accounting in which all the operations are forecasted and planned in advance to the: extent possible and the actual results compared with the forecasted and planned results. 2. Types of Budget: Capacity wise – Fixed Budget, Flexible Budget, Functions wise […]
Marginal Costing Marginal Costing:It is a costing system where products or services and inventories are valued at variable costs only. It does not consider fixed costs. Total Contribution (C) = Sales Revenue (S) – Total Variable Cost (V)Contribution per unit = Sales price per unit – Variable cost per unit Profit = Contribution – Fixed […]
Standard Costing Standard Costing:A technique which uses standards for costs and revenues for the purposes of control through variance analysis. Variance:A divergence from the pre-determined rates. Process of Standard Costing: Setting standards Ascertaining actual costs Compare standard cost and actual cost Investigate the reasons for variances Disposed-off the variance Types of Variance: Controllable variances: Those […]
Joint Products and By Products Question 1.Narrate the terms ‘Joint Products’ and ‘By-Products’ with an example of each term. [CA Inter Dec. 2021, 5 Marks]Answer:Joint Products: Joint products represent two or more products separated in the course of the same processing operation usually requiring further processing, each product being in such proportion that no single […]
Process and Operation Costing Question 1.Explain the “Equivalent Production.” [CA Inter Nov. 2013, 4 Marks]Answer:Equivalent Production:When opening and closing stocks of work-in-process exist, unit costs cannot be computed by simply dividing the total cost by total number of units still in process. We can convert the work-in-process units into finished units called equivalent production units […]