Managerial Economics & Financial Accounting

Define Managerial Economics.

Define National Income.

What do you mean by Law of Demand?

Define price elasticity of demand.

Define Production Function.

What is opportunity cost?

What do you mean by Monopoly?

Define Financial Statement Analysis.

What is Pay Back Period?

Explain Debtors Turnover Ratio.

Distinguish between deductive and inductive methods in Economics.

Discuss the various concepts of national income - Gross National Products, Net National Products, Personal Income and Disposable Income.

Explain the various methods of demand forecasting.

Distinguish between monopolistic competition and perfect competition.

Explain the degrees of price elasticity of demand.

The following table gives the total cost schedule of the firm. It is also given that the Average Fixed Cost (AFC) at 4 units of output is ₹ 5. | Quantity (Q) | Total Cost (TC) | |---|---| | 1 | 50 | | 2 | 65 | | 3 | 75 | | 4 | 95 | | 5 | 130 | | 6 | 185 | Find the Total Variable Cost (TVC) and Total Fixed Cost (TFC) schedules of the firm for the corresponding values of output.

Define Balance Sheet. Give two characteristics of balance sheet.

The following is the Balance Sheet of Riddhima Motors - Balance Sheet as on 31st March, 2022 | Liabilities | ₹ | Assets | ₹ | |---|---|---|---| | Equity Share Capital | 2,00,000 | Fixed Assets | 4,60,000 | | Preference Share Capital | 1,00,000 | Investments (Long Term) | 15,000 | | General Reserve | 50,000 | Stock | 50,000 | | Profit & Loss Account | 70,000 | Debtors | 20,000 | | Debentures | 1,00,000 | Cash | 15,000 | | Creditors | 30,000 | | | | Bank Overdraft | 10,000 | | | | | 5,60,000 | | 5,60,000 | Calculate the following ratios: (a) Current Ratio (b) Liquid Ratio/Quick Ratio (c) Debt Equity Ratio (d) Proprietary Ratio (e) Solvency Ratio

Discuss the nature and scope of Managerial Economics.

Explain the Law of Variable Proportions. Explain various stages of this law with the help of diagram.

How the price and output is determined under perfect competition during short period?

A company has to select one of the two alternative projects whose particulars are given below - | | Project A (₹) | Project B (₹) | |---|---|---| | Initial Investment/Initial Outlay | 1,18,720 | 1,00,670 | | Net cash inflow at the end of the year: | | | | 1 | 1,00,000 | 10,000 | | 2 | 20,000 | 10,000 | | 3 | 10,000 | 20,000 | | 4 | 10,000 | 1,00,000 | The company can arrange necessary fund at 10%. Compute Net Present Value (NPV) of each project and comment on the result. The PV factor of ₹ 1 received at the end of each year at 10% discount rate are as follows - | Year | 1 | 2 | 3 | 4 | |---|---|---|---|---| | 10% | 0.909 | 0.826 | 0.751 | 0.683 |