__________ deals with the provision of necessary accounting information to people within the organisation to enable them in decision making, planning and controlling business operations.
Management accounting
Management accounting deals with the provision of necessary accounting information to people within the organisation to enable them in decision making, planning, and controlling business operations. Unlike financial accounting, which focuses on providing financial information to external parties, management accounting is internal-focused, offering detailed insights into various segments of the business to assist managers in strategic planning and operational control.
| Accounting Type | Focus |
|---|---|
| Financial Accounting | External reporting |
| Cost Accounting | Cost control and reduction |
| Social Accounting | Social and environmental responsibility |
| Management Accounting | Internal decision making |
Important Questions from Capital Market
What is the market price per share (face value = Rs. 100) as per Walter model if the profitability rate of the company is 16 percent, payout ratio is 80 percent and the cost of capital is 10 percent?
A company's share is currently selling for Rs. 50 and is expecting a dividend of Rs. 3 per share after one year which is expected to grow at 8% indefinitely. What is the equity capitalisation rate?
The following two statements relate to receivables management. Choose the correct code for the statements being correct or incorrect.
Statement I: The major controllable decision variables for deciding the credit policy are the credit standards and analysis and the credit terms only.
Statement II : Factoring is a popular mechanism of managing, financing and collecting receivables.
The following two statements relate to financial derivatives. Choose the correct code for the statements being correct or incorrect.
Statement I: When an option is allowed to be exercised only on the maturity date, it is called an American option.
Statement II : If the option holder does not lose or gain whether he exercises his option or buys or sells the asset from the market, the option is said to be at-the-money.
The given statements are related to financial derivatives. Choose the correct code for the statements being correct or incorrect.
Statement I: A speculator will gain, if he sells foreign currency under a forward contract, when the spot price is higher than the forward price.
Statement II : In currency futures, intra currency spread exists when a speculator buys/sells the same currency for two delivery dates.
