Question 1: Describe the various accounting concepts and observe the role of accounting concepts in the preparation of financial statements.
Question 2: Describe the meaning of fund flow statement. How would you calculate funds from operations in order to prepare sources and usage statement of funds?
Question 3: What do you mean by the term CVP analysis? How does it distinct from break-even analysis?
Question 4: An analytical statement of Altos Limited is described below. It is based on an output (sales) level of 80,000 units.
Compute the degrees of:
a) Operating leverage
b) Financial leverage and
c) The combined leverage from the above data.
Question 5: What do you meant by the term capital structure? Describe the theories of capital structure in short.