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| Unit | Name of the Topic |
| 1 | Introduction to Management Accounting: |
| Meaning, Nature, Scope and Functions of Management Accounting. Role of Management Accounting in Decision Making. Management Accounting and Financial Accounting. | |
| 2 | Analysis and interpretation of Accounts: |
| Vertical form of Balance sheet and Profit & Loss account suitable for analysis. Trend Analysis. Comparative Statements. Common size statement. Simple problems based on the above. | |
| 3 | Ratio analysis and interpretation based on Vertical financial Statements as above: |
| (a) Balance Sheet Ratios: ¨ Current Ratio. ¨ Liquid Ratio. ¨ Stock Working Capital Ratio. ¨ Proprietary Ratio. ¨ Debt Equity Ratio. ¨ Capital Gearing Ratio. (b) Revenue Statement Ratios: ¨ Gross Profit Ratio. ¨ Expenses Ratio. ¨ Operating Ratio. ¨ Net Profit Ratio. ¨ Stock Turnover Ratio. | |
| (c) Combined Ratios: ¨ 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 coverage Ratio. ¨ Debtors Turnover Ratio. ¨ Creditors Turnover Ratio. | |
| 4 | Cash Flow Statements: |
| Preparation of Cash Flow Statements with reference to Accounting Standard No. 3 – Indirect Method Only. | |
| 5 | Working Capital – Concept: |
| Estimation of Working Capital Requirements in case of Trading and Manufacturing Organisations. |
| Unit | Name of the Topic |
| 1 | Introduction to Management Accounting: |
| Meaning, Nature, Scope and Functions of Management Accounting. Role of Management Accounting in Decision Making. Management Accounting and Financial Accounting. | |
| 2 | Analysis and interpretation of Accounts: |
| Vertical form of Balance sheet and Profit & Loss account suitable for analysis.
Trend Analysis. Comparative Statements. Common size statement. Simple problems based on the above. |
|
| 3 | Ratio analysis and interpretation based on Vertical financial Statements as above: |
| (a) Balance Sheet Ratios:
¨ Current Ratio. ¨ Liquid Ratio. ¨ Stock Working Capital Ratio. ¨ Proprietary Ratio. ¨ Debt Equity Ratio. ¨ Capital Gearing Ratio. (b) Revenue Statement Ratios: ¨ Gross Profit Ratio. ¨ Expenses Ratio. ¨ Operating Ratio. ¨ Net Profit Ratio. ¨ Stock Turnover Ratio. |
|
| (c) Combined Ratios:
¨ 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 coverage Ratio. ¨ Debtors Turnover Ratio. ¨ Creditors Turnover Ratio. |
|
| 4 | Cash Flow Statements: |
| Preparation of Cash Flow Statements with reference to Accounting Standard No. 3 – Indirect Method Only. | |
| 5 | Working Capital – Concept: |
| Estimation of Working Capital Requirements in case of Trading and Manufacturing Organisations. |
