Category: COMMERCE

ARCHIVES 07 November 2014 1) Explain the effect of absorption costing and marginal costing on net profit of a business firm. 2) Illustrate Operating Leverage and Financial Leverage. What insights you get from these two leverages? What are their limitations? 3) “Higher capital requirements might induce banks to seek higher returns in areas that are high risk or …

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ARCHIVES 05 November 2014 1) Define and distinguish between gross working capital and net working capital. Can a firm survive with zero net working capital ? 2) Discuss in brief the techniques of assets-liability management in a commercial bank 3) Discuss Sharpe’s ratio and Treynor’s ratio for evaluation of risk-return performance of Mutual Fund’s portfolio. 4) Why do companies …

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ARCHIVES 04 November 2014 1) What is contingent capital? Discuss the various instruments used to generate it. 2) Explain the financial parameters to be used to evaluate post-merger performance. 3) “To arrive at a comprehensive opinion, the auditor reviews evidence that may be classified into three major groups.” What are these groups and how do you relate the …

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ARCHIVES 03 November 2014 1) What IS revaluation reserve and how it is created? Discuss also the merits and demerits of such action. 2) Discuss contingent liabilities with examples. Where would these items feature in the financial statements of a firm ? What happens when bills are discounted by a firm ? Show the journal entries for such transactions. …

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