Management Accounting 2020

Unit I: Management accounting – Meaning – Definition – Nature
and Scope – Utility and Limitations – Management accounting Prin-
ciples – Functions of Management accounting – Tools of Manage-
ment accounting – Management accounting and Financial accounting
– Cost accounting and Management accounting.
Unit II: Ratio Analysis – Meaning of Ratios – Classification of
Ratios – Analysis and Interpretation of different Ratios – Profitability
Ratios – Coverage Ratios – Turnover Ratios – Financial Ratios –
Uses and Limitations of Ratio Analysis.
Unit III: Fund Flow Analysis – Meaning of Fund Flow Statement
– Uses of Fund Flow Statement – Parties interested in Fund Flow
Statement – Preparation of Fund Flow Statement – Treatment of
provision for Taxation, Proposed Dividend and Depreciation – State-
ment of Changes in Financial position.
Unit IV: Cash Flow Analysis – Meaning of Cash Flow Statement –
Preparation of Cash Flow Statement (Simple problems only) – Utility
and Limitations of Cash Flow Analysis
Unit V: Capital Budgeting – Concepts of Capital Budgeting – Im-
portance of Capital Budgeting – Capital Budgeting Process –Tradi-
tional methods – Pay- back period method – Net Present Value method
-(Simple problems only)