Ques 1.

Explain the following concepts and discuss their relevance in preparing Financial Statements:
(a) Business entity concept
(b) Money measurement concept
(c) Accrual concept
(d) Concept of conservatism

Ques 2.

What is a Balance Sheet? Explain the classification of items depicted in a Balance Sheet? Supplement you answer with figures extracted from a Balance sheet of any listed company.

Ques 3.

Delhi & New Delhi Company Ltd., manufactures and sells four types of products viz. A, B, C and D. The sales mix in value term comprises of:

Products	Percentage
A
B
C
D

The total budgeted sales (100%) are Rs 6,00,000 per month. The operating costs for each product is :
 60% of the Selling Price for product - A
 68% of the Selling Price for product - B
 80% of the Selling Price for product - C
 40% of the Selling Price for product - D
 The fixed costs are Rs. 1,59,000 per month.
(a) Calculate the Breakeven Point for the production on overall basis.
(b) If the sales mix is changed as follows and total sales per month remains at Rs. 6,00,000, calculate the new breakeven point. 

Ques 4.

What do you understand by Leverage? Explain the concept of Financial and Operating Leverage. In what way is Financial Leverage related to Operating Leverage, discuss.

Ques 5.

What is Capital Structure? Discuss the features of an appropriate Capital Structure and describe the determinants of Capital Structure.