Accounting and Financial Analysis

In the present complex business world, Accounting and Financial Analysis has become an integral part and useful tool of the management system. Keeping this importance in view the subject of Accounting and Financial Analysis has been included in the B.B.A./B.C.A. curriculum. The present text has been planned and designed to cope with the needs of B.B.A./B.C.A. students according to the course adopted by different universities and to present the subject in simple language and lucid style.

Salient features of the Accounting and Financial Analysis book:

• The subject-matter has been arranged and systematized strictly according to the course prescribed.
• The language and style of presentation are very simple and the subject-matter has been divided into various headings and sub-headings so as to give a flow in studying this numerical subject.
• Both theoretical and numerical aspects of the subject have been given due importance. The numerical illustrations have been carefully graded with supporting theoretical background. In many places, explanatory notes have also been given to clarify the working of the solution.
• Numerical illustrations and questions have been arranged in a systematic and scientific sequence from simple to complex.
• Illustrations and questions both have been arranged in an identical sequence so that students can easily solve the questions after understanding the illustration in the same order.
• Chapter of Cash Flow Statement has been written strictly as per AS-3.
• In the selection of illustrations and questions priority has been given to university examination papers so that students may make practice according to that standard.

Accounting and Financial Analysis Syllabus For B.B.A. Semester I of Chaudhary Charan Singh University, Meerut

Unit – I: Overview: Nature, Objectives, and Functions of Accounting, Accounting Concepts, Conventions and Principles, Accounting Equation, International Accounting Principles, and Standards; Matching of Indian Accounting Standards with International Accounting Standards.

Unit – II: Mechanics of Accounting: Double Entry System of Accounting, Journalizing of Transactions; Preparation of Final Accounts, Profit and Loss Accounts, Profit and Loss Appropriation Accounts and Balance Sheet, Policies related with Depreciation, Inventory and Intangible assets like copyright, Trademark, Patents, and Goodwill.

Unit – III: Analysis of Financial Statement: Ratio Analysis – Solvency Ratios, Profitability Ratios, Activity Ratios, Liquidity Ratios, Market Capitalization Ratios; Common Size Statement; Comparative Balance Sheet and Trend Analysis of manufacturing, Services, and Banking Organizations.

Unit – IV: Fund Flow Analysis: Meaning, Concept of Gross and Net Working Capital, Preparation of Schedule of Changes in Working Capital, Preparation of Fund Flow Statement, and its Analysis.

Unit – V: Cash Flow Analysis: Various Cash and Non Cash Transactions, Flow of Cash, Preparation of Cash Flow Statement, and its Analysis.

Accounting and Financial Analysis Book Contents

1. Definition, Development, and Objectives of Accounting
2. Basic Concepts, Principles, Postulates, and Conventions of Accounting
3. Principles of Double Entry System
4. Book of Original Record: Journal
5. Ledger
6. Books of Original Entries: Sub-Division of Journal
7. Trial Balance
8. Rectification of Errors
9. Adjustments
10. Trading and Profit and Loss Account and Balance Sheet
11. Depreciation
12. Bank Reconciliation Statement
13. Bills of Exchange
14. Valuation of Assets
15. Financial Statements (Meaning, Objectives, and Components)
16. Analysis of Financial Statements
17. Accounting Ratio
18. Cash Flow Statement
19. Funds Flow Statement
20. Cost Accounting: An Introduction
21. Elements of Cost and Direct and Indirect Cost
22. International Accounting Principles and Standards Matching of Indian Accounting Statement with International Accounting Standards
23. Accounting Policies related to Depreciation
24. Accounting Policy related to Intangible Assets