FINANCE AREA
Placement Preparedness Workbook
Week 3 Financial Mathematics &
Accounting Fundamentals
Due Date: 05/02/2024
Student Name(Section): USN:
Submitted to: Submission Date:
Workbook Guidelines
Module Release and Completion: Every Thursday, a new module will be released for
your study and completion. Take ample time to understand and answer the questions within
the provided module.
Submission Protocol: It is mandatory to submit your completed assignments to your
respective group leader by the following Monday after the module's release. Ensure that
your submissions are timely and thorough.
Submission Format: All answers and completed assignments should be neatly compiled
in the format provided. Please ensure clarity and organization in your responses.
Submission to Group Leaders: Your group leader, identified by the respective faculty
member, will collect and manage the submissions on behalf of your group. Ensure you
hand in your completed workbook to them within the stipulated timeframe.
Placement Eligibility Test: In September, an important Placement Eligibility Test will be
conducted. Questions for this test will be drawn from the modules covered in the
workbook. Hence, dedicating your time and effort to completing the workbook diligently
will greatly assist in your preparation for this test.
1
1. The total interest be on a deposit of Rs. 75000 for 4 years in a savings account yielding 6.5%
annual simple interest is
(a) Rs. 55500
(b) Rs. 19500
(c) Rs. 94500
(d) Rs. 11550
2. If your real estate taxes are Rs. 4,500 annually and you know that the rate is 3%, what is the
value of your house?
(a) Rs. 15000
(b) Rs 150000
(c) Rs. 1500000
(d) Rs. 750000
2
3. Which of the following are not the examples of financial assets?
(a) Stocks
(b) Bank Loan
(c) Bond
(d) Raw Material
4. The correlation between two variables (X and Y) and Cor(X, Y) = 1, then the variables
(a) move together in the same direction
(b) move opposite to each other
(c) move in X does not affect Y
(d) move in Y does not affect X
5. A loan of Rs. 3,000 carrying 9% interest is to be paid off at Rs. 150 per month. The monthly
balances and the interest on them would form two arithmetic progressions. The total
interest paid is
(a) Rs. 237.25
(b) Rs. 236.25
(c) Rs. 235.25
(d) Rs. 236.5
6. The scientific notation of 0.000359 is
(a) 359(10)−6
(b) 35.9(10)−5
(c) 3.59(10)−5
(d) 0.359(10)−3
3
7. If we want to form a five-member committee chosen from 10 professors, possible
committees can be formed is
(a) 352
(b) 30240
(c) 252
(d) 14400
8. The statistical distribution is given by the table below. Calculate the variance.
(a) 3.1275
(b) 67.45 xi 61 64 67 70 73
(c) 8.213
fi 5 18 42 27 8
(d) 67.47
4
9. Given the geometric progression 625, 125, 25, . . . find the sixth term.
(a) 0.4
(b) 0.8
(c) 0.2
(d) 0.1
10. Calculate standard deviation of the following distribution: 5, 6, 5, 6, 9, 4, 9, 12
(a) 7.21
(b) 3
(c) 2.55
(d) 6.5
5
71. What are accounts receivable and accounts payable?
72. What is prepaid expense? How do you treat prepaid expenses? Explain with example.
Discuss its effect on the financial statement.
73. Define Working capital.
6
74. How are the following items reported in balance sheet/profit and loss account – salary,
wages, rent outstanding, bad debts, bad debts recovered, prepaid expenses?
75. Which method of depreciation is most widely used, and why?
76. What is fictitious asset? Give examples.
7
77. What is deferred revenue? Explain its treatment in balance sheet.
78. Differentiate between expenses and expenditure.
79. Define accounting equation.
8
80. What is Suspense account?
81. What is the treatment for bad debts written off?
71. What is revenue recognition, and matching principle? Explain with example.
9
72. What is the difference between income statement, and receipts & payments account?
71. Explain piecemeal distribution of cash.
73. Discuss contra entry and compound entry in cash account with examples.
10
74. Discuss the treatment of following in cash flow statement: Royalty received; Loss on
sale of assets; Interest received on loans & advances; Dividend paid?
75. What is COGS and how is it calculated?
76. What is the difference between trading and manufacturing account?
11
77. Differentiate between capital and revenue expenditure.
78. Why do total of assets and liabilities match in a balance sheet? What steps should be
taken if they do not match?
