Class 12 Finance notes and question bank — NEB Exam

Finance

Class 12 - 10 Chapters

Sub. code 4181

NEB — GRADE XII

2082

Old Question

Class 12 Finance Old Question 2082

The candidates are required to give their answers in their own words as far as practicable. The figures in the margin indicate full marks.

समय (Time) : 3 Hoursपूर्णाङ्क (Full Marks) : 75

Pass Marks : 32

सबै प्रश्नको उत्तर दिनुहोस् । (Attempt All Questions)

This old question paper is for Class 12 Finance, 2082 (subject code 4181), carrying full marks of 75 with a pass mark of 32, to be completed within 3 Hours. Model answers are available for questions that have one — reveal them with a free account (a few reveals) or a paid plan (unlimited).

Group A

Very Short Answer Questions

11 marks[11 x 1 = 11]
1.
[1]

State any two responsibilities of financial manager.

2.
[1]

Which financial statement shows financial position of a business?

3.
[1]

Write the meaning of fixed assets turnover ratio.

4.
[1]

State any two advantages of short term debt for a company.

5.
[1]

Write any two features of optimal capital structure.

6.
[1]

Mention any two differences between preferred stock and common stock.

7.
[1]

List any two characteristics of bond.

8.
[1]

What is investment decision?

9.
[1]

Define forward rate.

10.
[1]

If short term source is Rs. 3,00,000 which is 40% of the total debt capital, find out the total debt of a company.

11.
[1]

If current exchange rate is Rs. 130 per dollar, how much dollar is needed for Rs. 68,900?

Group B

Short Answer Questions

40 marks[8 x 5 = 40]
12.
[5]

How business finance is interrelated with economics? Explain.

13.
[5]

How income statement is prepared? Describe with suitable example.

14.
[5]

How much annual percentage cost and effective annual rate when credit terms are 4/15, net 35?

15.
[5]

How much amount of breakeven point in rupees and operating fixed cost, if unit selling price Rs. 60 and unit variable cost Rs. 40 with break-even point is 8,000 units.

16.
[5]

Explain any five types of investment proposals.

17.
[5]
  1. A company has annual sales of Rs. 8,00,000 with an inventory turnover ratio of 8 times. It has receivable collection period of 24 days and a payable deferral period of 18 days. (Assume 340 working days in a year.)

Required:
a) Inventory Conversion Period
b) Cash Conversion Cycle

18.
[5]

Explain any five factors affecting dividend decision.

19.
[5]

Describe the role of multinational corporation in development of a country.

Or
19.
[5]

Exchange rate of one Singapore Dollar (SGD) is 1.8484 Australian Dollar (AUD), whereas one Singapore Dollar is 1.3748 American Dollar (USD). Find out the cross rate between Australian Dollar (AUD) and American Dollar (USD).

Group C

Long Answer Questions

24 marks[8 x 3 = 24]
20.
[8]

Following information of Balance Sheet given as:

Items

Assets

Liabilities

Cash

1,00,000

Debtors

2,00,000

Machinery

4,00,000

Stock

50,000

Capital

3,00,000

Debenture

1,00,000

Creditors

80,000

Overdraft

1,20,000

Retained Earnings

1,50,000

Total

7,50,000

7,50,000

Additional Information:

i) Net profit for the year: Rs. 1,00,000
ii) Sales: Rs. 15,00,000

Required:

a) Current Ratio
b) Liquid Ratio
c) Inventory Turnover Ratio
d) Debt-Equity Ratio
e) Total Assets Turnover Ratio
f) Return on Capital Employed
g) Return on Equity
h) Net Profit Ratio

21.
[8]

Write the meaning of ordinary share. Explain any five features of ordinary share.

Or
21.
[8]
a.
[4]

A company has issued Rs. 1,000 par, 12% coupon perpetual bonds. If required rate of return to the bond holders is 15%, what should be the value of bond?

b.
[4]

A company has paid a cash dividend of Rs. 20 per share in last year. Shareholders required 14% return on investment. If expected rate of growth is 8% per year,

Required:

Value of stock at present.

22.
[8]

Following informations are given as:

Year

Cash Flow

Project A (Rs.)

Project B (Rs.)

0

NCO

(4,00,000)

(4,00,000)

1

CFAT

1,50,000

1,64,000

2

CFAT

1,80,000

1,64,000

3

CFAT

1,90,000

1,64,000

4

CFAT

2,00,000

1,64,000

5

CFAT

1,00,000

1,64,000

Other Information:

i) Required rate of return: 12%

Required:

a) Find the net present value of both projects. [4+2]

b) Which project is more profitable? Why? [1+1]

Finance — Old Question 2082NEB Exam

Paper Overview & Analysis

2082

Year

Old Question

Type

75

Full Marks

32

Pass Marks

3 Hours

Duration

24

Question Items

Question Type Breakdown

Very Short Answer11
Short Answer10
Long Answer3

Group Breakdown

Group A11 questions · 11 marks
Group B8 questions · 40 marks
Group C5 questions · 24 marks

Chapter Breakdown

Sources of Fund3 items7 marks
Bond and Stock Valuation3 items10 marks
Capital Investment Decision3 items14 marks
International Finance3 items7 marks
Introduction to Business Finance2 items6 marks
Financial Statements and Reporting2 items6 marks
Financial Analysis2 items9 marks
Capital Structure2 items6 marks
Working Capital and Current Assets Management1 item5 marks
Dividends and Dividend Payment Procedure1 item5 marks

Chapter breakdown covers 22 of 24 question items on this paper — the rest aren't tagged to a chapter yet.