Description

Management Accounting

SYBBI Semester III

Syllabus

1. Introduction to Management Accounting
Meaning and Definition, Scope, Functions, Objectives, Importance, Role of Management Accounting, Management Accounting Framework, Tools of Management Accounting.

2. Financial Statement Analysis
A. Introduction to Corporate Financial Statements :
Understanding the Balance Sheet and Revenue Statements with the headings and sub headings. Uses of Financial Statements, Users of Financial Statements.
B. Financial Statement Analysis :
Introduction and Meaning of Financial Statement Analysis, Steps, Objective, Types of Analysis.
Ratio Analysis : Meaning, Classification, Du Pont Chart, Advantages and Limitations
Balance Sheet Ratios : Current Ratio, Liquid Ratio, Stock Working Capital Ratio, Proprietary Ratio, Debt Equity Ratio, Capital Gearing Ratio.
Revenue Statement Ratios : Gross Profit Ratio, Expenses Ratio, Operating Ratio, Net Profit Ratio, Net Operating Profit Ratio, Stock Turnover Ratio, Combined Ratio, Return on Capital Employed (including Long Term Borrowings), Return on Proprietor’s Fund (Shareholders Fund and Preference Capital), Return on Equity Capital, Dividend Payout Ratio, Debt Service Ratio, Debtors Turnover, Creditors Turnover.

3. Working Capital Management
Concept, Nature of Working Capital, Planning of Working Capital, Estimation / Projection of Working Capital Requirements in case of Trading and Manufacturing Organisation, Operating Cycle

4. Management of Profits / Dividend Policy
Meaning, Types, Factors influencing Dividend Policy, Forms of Dividend.
Determinants of Dividends Policy : Factors; Dividend Policy in India; Bonus Shares (Stock Dividend) and Stock (Share) Splits; Legal, Procedural; and Tax Aspects associated with Dividend Decision.