MCS-035 Accountancy and Financial Management
(3 Credits)
Objectives
This course aims at introducing the basic accounting procedures and financial management processes. It also focuses on the computerised implementation of the various accounting principles discussed at different levels.
Syllabus
BLOCK 1:
Accounting System
Unit 1:
Accounting and its Functions
·
Scope of Accounting
·
Emerging Role of Accounting
·
Accounting as an Information System
·
Role and Activities of an Accountant
·
Accounting Personnel
·
Nature of Accounting Function
·
Organisation Chart for Accounting
and
·
Finance
Unit 2:
Accounting Concepts and Standards
·
Accounting Framework
·
Accounting Concepts
·
Accounting Standards
·
Changing Nature of Generally Accepted
·
Accounting Principles (GAAP)
·
Attempts towards Standardisation
·
Accounting Standards in
India
Unit 3:
Basic Accounting Process: Preparation of Journal, Ledger and
Trial Balance
·
Accounting Equation
·
Classification of Accounts
·
Definitions of Journal and
Ledger
o
Journalising Process
o
Ledger Posting
o
Balancing an Account
·
Trial Balance
·
Objectives of Preparing Trial Balance
o
Total Method of Preparing the
Trial Balance
o
Balance Method of Preparing the
Trial Balance
o
Limitations of Trial Balance
·
Accounting
Cycle
BBLOCK 2:
Understanding and Analysis of Financial
Statements
Unit 1:
Preparation and Analysis of Final Accounts
·
Trading Account
o
Opening/Closing Stock
o
Net Purchases
o
Direct Expenses
o
Net Sales
·
Profit And Loss Account
·
Difference between Trading and Profit
&
Loss Account
·
Balance Sheet
·
Constructing a Balance Sheet
·
Classification of Balance Sheet’s
Items
·
Adjustment Entries
o
Closing Stock
o
Depreciation
o
Bad Debts
o
Provision for Bad and Doubtful
Debts
o
Salaries and Wages
o
Outstanding Expenses
o
Prepaid Expenses
o
Accrued Income
o
Income Received in Advance
Unit 2:
Funds Flow and Cash Flow Statements
·
Statements of changes in Financial
Positions
·
Fund Flow Statement
·
Analysing Changes in Working Capital
·
Sources of Funds
·
Uses (Applications) of Funds
·
Cash Flow Statement
·
Sources and Uses of Cash
Unit 3:
Ratio Analysis
·
Categories of Ratios
o
Long-term Solvency Ratios
o
Short-term Solvency Ratios
o
Activity or Turnover Ratios
o
Profitability Ratios
o
Market Test Ratios
BLOCK 3:
Financial Management and
Decisions
Unit 1:
Introduction to Financial
Management
·
Evolution of Financial Management
·
Significance of Financial Management
·
Principles of Financial Management
·
Economic Value Added
·
Agency Relationship
·
Changing Financial Landscape
Unit 2:
Time Value of Money and Investment Decisions
·
Determining The Future Value
o
Shorter Compounding Period
o
Effective versus Nominal Rates
o
Continuous Compounding
·
Annuity
Unit 3:
Working Capital Decisions
·
Characteristics of
Current Assets
·
Operating Cycle Concepts
·
Factors Influences
Working Capital
Environment
·
Estimating working
capital Requirement
BLOCK 4:
Working Capital Management
Unit 1:
Cash and Treasury Management
·
Treasury Management
o
Treasury Risk Management
o
Functions of Treasury Department
·
Facets of Cash Management
o
Motives for Holding Cash
o
Cash Planning
o
Determining the Optimum Cash
Balance
·
Methods of Cash Flow Budgeting
·
Investing Surplus Cash
·
Cash Collection and Disbursements
Unit 2:
Receivables Management
·
Terms of Payment
·
Credit Policy Variables
·
Credit Evaluation
·
Monitoring Receivables
·
Factoring
Unit 3:
Inventory Management
·
Reasons for Holding Inventory
·
Objectives of Inventory Management
·
Techniques of Inventory Control
·
Modern Techniques
·
Traditional Techniques