Introduction to Management Accounting SYBCOM Semester III Manan Prakashan

Introduction to Management Accounting SYBCOM  Manan Prakashan
Semester III

1. Introduction to Management Accounting
A. Introduction to Management Accounting: Meaning – Nature, Scope, Functions, Decision-Making Process, Financial Accounting v/s Management Accounting
B. Analysis and Interpretation of Financial Statements :
(i) Study of Balance Sheet and Income Statement / Revenue Statements in a vertical form suitable for analysis
(ii) Relationship between items in Balance Sheet and Revenue Statement
(iii) Tools of analysis of Financial Statements (i) Trend Analysis (ii) Comparative Statement (iii) Common Size Statement
Note : (i) Problems based on trend analysis (ii) Short Problems on Comparative and Common Sized Statements

2. Ratio Analysis and Interpretation
(Based on Vertical Form of Financial Statements – Meaning, Classification, Du Point Chart, Advantages, and Limitations)
A. Balance Sheet Ratios :
(i) Current Ratio
(ii) Liquid Ratio
(iii) Stock Working Capital Ratio
(iv) Proprietary Ratio
(v) Debt-Equity Ratio
(vi) Capital Gearing Ratio
B. Revenue Statement Ratios :
(i) Gross Profit Ratio
(ii) Expenses Ratio
(iii) Operating Ratio
(iv) Net Profit Ratio
(v) Net Operating Profit Ratio
(vi) Stock Turnover Ratio
C. Combined Ratio
(i) Return on Capital employed (Including Long Term Borrowings)
(ii) Return on proprietor’s Fund
(Shareholders Fund and Preference Capital)
(iii) Return on Equity Capital
(iv) Dividend Payout Ratio
(v) Debt Service Ratio
(vi) Debtors Turnover
(vii) Creditors Turnover
(Practical Question on Ratio Analysis)

3. Working Capital Management : (Practical Questions)
A. Concept, Nature of Working Capital, Planning of Working Capital
B. Estimation / Projection of Working Capital Requirement in case of Trading and Manufacturing Organization
C. Operating Cycle

4. Capital Budgeting
A. Introduction
B. The Classification of Capital Budgeting Projects
C. Capital Budgeting Process
D. Capital Budgeting Techniques – Payback Period, Accounting Rate of Return, Net Present Value, The Profitability Index, Discounted Payback. (Excluding Calculation of Cash Flow)