MS 4 IGNOU MBA Assignment July – Dec 2013

1. Explain the various accounting concepts and examine the role of accounting concepts in the preparation of financial statements.
2. Explain the meaning of fund flow statement. How would you compute funds from operations in order to prepare sources and usage statement of funds?
3. What is CVP analysis? How does it differ from break-even analysis?
4. An analytical statement of Altos Limited is shown below. It is based on an output (sales) level of 80,000 units.


Sales 9,60,000
Variable Cost 5,60,000
Revenue before fixed costs 4,00,000
Fixed Costs 2,40,000
Interest     60,000
Earning beore tax 1,00,000
Tax     50,000
Net Income     50,000

Calculate the degrees of (i) operating leverage, (ii) financial leverage and (iii) the combined leverage from the above data.
5. What is meant by capital structure? Explain the theories of capital structure in brief.

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