This document provides an introduction to the module "Managerial Accounting" taught by Dr. Varadraj Bapat. It outlines the learning objectives of understanding accounting, managerial accounting, and financial statements. It emphasizes that while specialization is important, understanding accounting and finance becomes more necessary at higher levels of management. It differentiates the three streams of accounting and explains the relationship between financial accounting, cost accounting, and management accounting.
Here are the steps to calculate the working capital requirement:
1. Calculate the daily production:
Previous year's production / 365 days = 60,000 units / 365 days = 164 units
2. Calculate the daily requirement for raw materials, wages and overheads:
Raw Materials: 164 units x 60% of cost per unit = 98 units x Cost per unit
Direct Wages: 164 units x 10% of cost per unit = 16 units x Cost per unit
Overheads: 164 units x 20% of cost per unit = 33 units x Cost per unit
3. Calculate the average holding period in days:
Raw Materials: 2 months x 30 days = 60 days
Work-in-progress
The document discusses working capital management. It defines working capital as the funds required for day-to-day operations of a business. Working capital includes current assets like inventory, accounts receivable, and cash. It is necessary for purchasing raw materials and paying daily expenses. Effective working capital management involves cash, receivables, payables, and inventory management. Both deficient and excessive working capital can pose dangers for a business.
The document discusses working capital management. It defines working capital as the excess of current assets over current liabilities. It lists the key components of working capital like inventory, receivables, cash, and payables. It discusses different types of working capital and factors that determine working capital requirements like the nature of business, production cycle, and access to credit. The objectives of working capital management are to optimize current asset investments and ensure current liabilities can be met in a timely manner. Components of working capital management include inventory management, cash management, and receivables management.
This document outlines key concepts related to working capital management. It discusses working capital basics like current assets and liabilities. It also covers topics like the cash conversion cycle, permanent vs temporary working capital, and factors that influence working capital needs. Additionally, it addresses the objectives of working capital management and trade-offs companies consider around inventory, cash, receivables and payables levels. Maintaining an optimal level of working capital is important to ensure liquidity while maximizing profitability.
Working capital refers to the capital required for financing short-term assets such as cash, inventory, and accounts receivable. It is also known as revolving or circulating capital. There are different types of working capital like gross working capital, net working capital, permanent working capital, and temporary working capital. Management of working capital involves maintaining optimal levels of current assets and current liabilities to ensure sufficient liquidity and an efficient balance between risk and profitability.
This document discusses working capital management. It defines working capital as the funds used in a business for day-to-day operations, and explains that adequate working capital is important for efficiency and survival. It distinguishes between gross and net working capital, and discusses factors that influence working capital requirements like nature of business and credit terms. The document also outlines methods for estimating working capital needs based on current assets, operating cycles, and cash costs.
Working capital management_shweta_patilShweta Patil
This document discusses working capital and working capital management. It begins with definitions of working capital as the funds used in a business for day-to-day operations, including current assets like inventory, accounts receivable, cash. Working capital management involves managing current assets and liabilities to ensure adequate but not excessive working capital. The document outlines types of working capital, factors that affect working capital needs, and strategies for managing working capital levels including the operating cycle and cash conversion cycle. Key components of working capital management are also discussed like inventory, receivables, and cash management.
Here are the steps to calculate the working capital requirement:
1. Calculate the daily production:
Previous year's production / 365 days = 60,000 units / 365 days = 164 units
2. Calculate the daily requirement for raw materials, wages and overheads:
Raw Materials: 164 units x 60% of cost per unit = 98 units x Cost per unit
Direct Wages: 164 units x 10% of cost per unit = 16 units x Cost per unit
Overheads: 164 units x 20% of cost per unit = 33 units x Cost per unit
3. Calculate the average holding period in days:
Raw Materials: 2 months x 30 days = 60 days
Work-in-progress
The document discusses working capital management. It defines working capital as the funds required for day-to-day operations of a business. Working capital includes current assets like inventory, accounts receivable, and cash. It is necessary for purchasing raw materials and paying daily expenses. Effective working capital management involves cash, receivables, payables, and inventory management. Both deficient and excessive working capital can pose dangers for a business.
The document discusses working capital management. It defines working capital as the excess of current assets over current liabilities. It lists the key components of working capital like inventory, receivables, cash, and payables. It discusses different types of working capital and factors that determine working capital requirements like the nature of business, production cycle, and access to credit. The objectives of working capital management are to optimize current asset investments and ensure current liabilities can be met in a timely manner. Components of working capital management include inventory management, cash management, and receivables management.
This document outlines key concepts related to working capital management. It discusses working capital basics like current assets and liabilities. It also covers topics like the cash conversion cycle, permanent vs temporary working capital, and factors that influence working capital needs. Additionally, it addresses the objectives of working capital management and trade-offs companies consider around inventory, cash, receivables and payables levels. Maintaining an optimal level of working capital is important to ensure liquidity while maximizing profitability.
Working capital refers to the capital required for financing short-term assets such as cash, inventory, and accounts receivable. It is also known as revolving or circulating capital. There are different types of working capital like gross working capital, net working capital, permanent working capital, and temporary working capital. Management of working capital involves maintaining optimal levels of current assets and current liabilities to ensure sufficient liquidity and an efficient balance between risk and profitability.
This document discusses working capital management. It defines working capital as the funds used in a business for day-to-day operations, and explains that adequate working capital is important for efficiency and survival. It distinguishes between gross and net working capital, and discusses factors that influence working capital requirements like nature of business and credit terms. The document also outlines methods for estimating working capital needs based on current assets, operating cycles, and cash costs.
Working capital management_shweta_patilShweta Patil
This document discusses working capital and working capital management. It begins with definitions of working capital as the funds used in a business for day-to-day operations, including current assets like inventory, accounts receivable, cash. Working capital management involves managing current assets and liabilities to ensure adequate but not excessive working capital. The document outlines types of working capital, factors that affect working capital needs, and strategies for managing working capital levels including the operating cycle and cash conversion cycle. Key components of working capital management are also discussed like inventory, receivables, and cash management.
The document discusses key concepts related to working capital management including:
- Gross working capital refers to a firm's total investment in current assets like cash, inventory, and accounts receivable. Net working capital is current assets minus current liabilities.
- Determinants of working capital include the nature of the business, production cycle, inventory and credit policies, and growth plans.
- Operating cycle refers to the time period between a firm paying for raw materials and collecting cash from sales, and considers inventory conversion, collection of receivables, and deferral of payables periods.
Working capital management is important for infrastructure firms due to their capital intensive nature and long project cycles. The document analyzes various sources of working capital financing used by infrastructure companies, including cash credit, overdraft facilities, letter of credit, bank guarantees, and hypothecation purchase finance. It also discusses corporate term loans and how interest rates are determined based on company ratings. Factoring, letters of credit, and bank guarantees are suitable for specific transactions, while hypothecation financing provides equipment funding through a down payment structure.
The document discusses working capital management. It covers topics such as the cash operating cycle, funding current assets, managing inventory, accounts receivable, accounts payable, and cash. The objectives of working capital management are to maximize profitability while maintaining adequate liquidity and financial stability. Effective working capital management requires balancing current assets, current liabilities, and sources of short-term and long-term financing.
Introduction
Working capital typically means the firm’s holding of current or short-term assets such as cash, receivables, inventory and marketable securities.
These items are also referred to as circulating capital
Corporate executives devote a considerable amount of attention to the management of working capital
Definition
Working Capital refers to that part of the firm’s capital, which is required for financing short-term or current assets such a cash marketable securities, debtors and inventories. Funds thus, invested in current assets keep revolving fast and are constantly converted into cash and this cash flow out again in exchange for other current assets. Working Capital is also known as revolving or circulating capital or short-term capital.
Nature Of Working Capital
Working capital management is concerned with the problems that arise in attempting to manage the current assets, the current liabilities and the interrelations that exist between them.
Current assets refer to those assets which in the ordinary course of business can be, or will be, converted into cash within one year without undergoing a diminution in value and without disrupting the operations of the firm.
Examples- cash, marketable securities, accounts receivable and inventory.
Current liabilities are those liabilities which are intended, at their inception, to be paid in the ordinary course of business, within a year, out of the current assets or the earnings of the concern.
Examples- accounts payable, bills payable, bank overdraft and outstanding expenses.
This chapter included, Meaning and concepts of working capital Management , Operational environment for working capital Management and Determinants of working capital
This document provides an overview of working capital management. It defines working capital as current assets that can be converted to cash within a year to meet day-to-day operations. Working capital management aims to maximize shareholder wealth by managing sources and uses of working capital. It also discusses key aspects like gross and net working capital, operating cycle, factors that affect working capital needs, approaches to financing working capital, and tools for monitoring and controlling working capital. The document provides definitions and formulas to calculate different working capital metrics and estimates working capital requirements based on various operational factors.
This document discusses working capital management over 5 modules. Module I introduces concepts of working capital including liquidity, profitability, and factors affecting working capital requirements. Module II covers approaches to estimating working capital using the operating cycle approach. Module III discusses management of receivables and payables. Module IV discusses cash management. Module V discusses sources of working capital finance including trade credit, money market instruments, and bank loans.
Working capital management ppt @ bec doms bagalkot mbaBabasab Patil
This document discusses working capital, which is defined as current assets minus current liabilities. It measures a company's liquid assets available to operate its business. The document outlines different components of working capital like inventory, accounts receivable, cash, and current liabilities like accounts payable. It also discusses the importance of managing working capital to ensure sufficient cash flow and meeting short-term obligations. Different approaches to determining a firm's working capital needs are discussed, including industry norms, economic modeling, and strategic choices based on a firm's specific business practices and goals.
Introduction to working capital managementJagannath Das
The document discusses working capital management. It defines gross and net working capital. Gross working capital refers to total current assets, while net working capital is the difference between current assets and current liabilities. The document also discusses the need for working capital, including operating cycles, permanent vs temporary working capital, and factors that cause changes in working capital levels. It provides examples of estimating current assets and liabilities to compute the net working capital required.
The document defines working capital as the capital required to finance short-term operating needs like current assets. It discusses the different types of working capital including gross and net working capital. It also covers key concepts related to working capital management such as operating cycle, determinants of working capital needs, and approaches to financing current assets using long-term vs short-term sources of funds.
The document discusses working capital, which is the cash needed for day-to-day business operations and is calculated as current assets minus current liabilities; it also covers liquidity ratios like the current ratio and acid test ratio to measure a business's ability to pay debts, and risks like overtrading that can occur if too much business is taken on without sufficient working capital. Managing working capital effectively through inventory, debtors, creditors and cash flow is important for business success.
Management of Working Capital- Britannia Industries Ltd.Nikita Jangid
The document discusses working capital and its management. It defines working capital as the capital required for financing day-to-day business operations. Shortage of working capital can cause business failures while sufficient working capital is important for business success and liquidity. The document also discusses different types of working capital like permanent working capital and temporary working capital. It outlines the goals of working capital management as ensuring sufficient cash flow and balancing current assets and liabilities. Key factors that determine working capital requirements include the nature of industry, sales volume, inventory and receivables turnover, and the production cycle.
The document defines working capital as assets required for the day-to-day operations of a company, such as raw materials, wages, rent, and advertising. It then discusses the different kinds of working capital, including gross vs net working capital and permanent vs temporary working capital. Some key points made include that gross working capital refers to a firm's total investment in current assets, while net working capital is current assets minus current liabilities. It also explains that permanent working capital remains until the business closes, while temporary working capital is needed for short periods.
Chapter 15 The Management Of Working CapitalAlamgir Alwani
The document discusses key concepts related to working capital management. It defines working capital as the assets and liabilities used for day-to-day operations, including cash, receivables, inventory, payables, and accruals. The objective is to manage working capital efficiently with minimal funds tied up in short-term assets while balancing operational needs. Short-term financing options are also reviewed, including spontaneous financing from payables/accruals, bank loans, commercial paper, and asset-based lending secured by receivables or inventory. Cash and receivables management techniques aim to accelerate cash inflows and outflows.
This document discusses working capital and its components. It defines working capital as the capital required to finance short-term operating needs such as inventory, accounts receivable, and cash. It also discusses the operating cycle as the continuous flow of cash being converted into inventory, then receivables, and back into cash. Finally, it notes that companies must determine the optimal level of working capital to support operations without having excess funds tied up in current assets.
ZA
Working capital management is important for business success. Gross working capital refers to total current assets, while net working capital is current assets minus current liabilities. Many factors affect a business's working capital requirements, including its nature, size, growth rate, production cycle, credit and purchasing policies, availability of materials and credit, profit levels, taxes, and price changes. Determining the optimal level of working capital is necessary.
- Working capital refers to short-term funds used for day-to-day operations, including current assets like inventory, accounts receivable, cash. It allows a company to operate smoothly by financing current assets.
- The goal of working capital management is to maintain sufficient liquidity to meet operating needs while avoiding excess or inadequate working capital levels, which are both problematic.
- Key concepts include gross working capital (total current assets), net working capital (current assets - current liabilities), and operating cycle (time from purchasing inventory to collecting cash from sales).
The document provides an overview of working capital, including definitions, concepts, and management. It defines working capital as the capital required for financing short-term assets like cash, inventory, and receivables. There are two concepts of working capital - the balance sheet concept focuses on current assets and liabilities, while the operating cycle concept looks at cash flows through purchasing, production, and sales cycles. Proper management of working capital is important, as both excess and inadequate working capital can hurt a business. Factors like industry, sales, and inventory turnover affect working capital needs. Forecasting and estimating working capital requirements involves considering items like materials, production timelines, credit terms, and cash flows.
The document discusses the nature, concepts, objectives, and determinants of working capital management. It provides definitions of key terms like current assets, current liabilities, gross working capital, net working capital, and approaches to determine an appropriate financing mix. The document also discusses forecasting working capital requirements and factors to consider. It summarizes a research paper that analyzed trends in working capital management and its impact on the performance of Mauritian small manufacturing firms. The study found a relationship between profitability and various working capital measurements.
This document provides an overview of a course on Managerial Accounting taught by Dr. Varadraj Bapat. It discusses the need to understand accounting and finance concepts for management purposes. It also summarizes the key differences between financial accounting, cost accounting, and management accounting. Finally, it provides a high-level overview of key financial statements like the balance sheet and income statement and how they are used.
The document discusses financial transformation and outsourcing finance functions to reduce costs and improve efficiency; it proposes that Accuserv Corporate Advisors can help companies outsource accounting, finance, budgeting and reporting to handle non-core activities and free up management time, using a customized approach based on the company's needs and culture. The company aims to provide timely and reliable financial information to stakeholders through qualified finance professionals and a skilled team.
The document discusses key concepts related to working capital management including:
- Gross working capital refers to a firm's total investment in current assets like cash, inventory, and accounts receivable. Net working capital is current assets minus current liabilities.
- Determinants of working capital include the nature of the business, production cycle, inventory and credit policies, and growth plans.
- Operating cycle refers to the time period between a firm paying for raw materials and collecting cash from sales, and considers inventory conversion, collection of receivables, and deferral of payables periods.
Working capital management is important for infrastructure firms due to their capital intensive nature and long project cycles. The document analyzes various sources of working capital financing used by infrastructure companies, including cash credit, overdraft facilities, letter of credit, bank guarantees, and hypothecation purchase finance. It also discusses corporate term loans and how interest rates are determined based on company ratings. Factoring, letters of credit, and bank guarantees are suitable for specific transactions, while hypothecation financing provides equipment funding through a down payment structure.
The document discusses working capital management. It covers topics such as the cash operating cycle, funding current assets, managing inventory, accounts receivable, accounts payable, and cash. The objectives of working capital management are to maximize profitability while maintaining adequate liquidity and financial stability. Effective working capital management requires balancing current assets, current liabilities, and sources of short-term and long-term financing.
Introduction
Working capital typically means the firm’s holding of current or short-term assets such as cash, receivables, inventory and marketable securities.
These items are also referred to as circulating capital
Corporate executives devote a considerable amount of attention to the management of working capital
Definition
Working Capital refers to that part of the firm’s capital, which is required for financing short-term or current assets such a cash marketable securities, debtors and inventories. Funds thus, invested in current assets keep revolving fast and are constantly converted into cash and this cash flow out again in exchange for other current assets. Working Capital is also known as revolving or circulating capital or short-term capital.
Nature Of Working Capital
Working capital management is concerned with the problems that arise in attempting to manage the current assets, the current liabilities and the interrelations that exist between them.
Current assets refer to those assets which in the ordinary course of business can be, or will be, converted into cash within one year without undergoing a diminution in value and without disrupting the operations of the firm.
Examples- cash, marketable securities, accounts receivable and inventory.
Current liabilities are those liabilities which are intended, at their inception, to be paid in the ordinary course of business, within a year, out of the current assets or the earnings of the concern.
Examples- accounts payable, bills payable, bank overdraft and outstanding expenses.
This chapter included, Meaning and concepts of working capital Management , Operational environment for working capital Management and Determinants of working capital
This document provides an overview of working capital management. It defines working capital as current assets that can be converted to cash within a year to meet day-to-day operations. Working capital management aims to maximize shareholder wealth by managing sources and uses of working capital. It also discusses key aspects like gross and net working capital, operating cycle, factors that affect working capital needs, approaches to financing working capital, and tools for monitoring and controlling working capital. The document provides definitions and formulas to calculate different working capital metrics and estimates working capital requirements based on various operational factors.
This document discusses working capital management over 5 modules. Module I introduces concepts of working capital including liquidity, profitability, and factors affecting working capital requirements. Module II covers approaches to estimating working capital using the operating cycle approach. Module III discusses management of receivables and payables. Module IV discusses cash management. Module V discusses sources of working capital finance including trade credit, money market instruments, and bank loans.
Working capital management ppt @ bec doms bagalkot mbaBabasab Patil
This document discusses working capital, which is defined as current assets minus current liabilities. It measures a company's liquid assets available to operate its business. The document outlines different components of working capital like inventory, accounts receivable, cash, and current liabilities like accounts payable. It also discusses the importance of managing working capital to ensure sufficient cash flow and meeting short-term obligations. Different approaches to determining a firm's working capital needs are discussed, including industry norms, economic modeling, and strategic choices based on a firm's specific business practices and goals.
Introduction to working capital managementJagannath Das
The document discusses working capital management. It defines gross and net working capital. Gross working capital refers to total current assets, while net working capital is the difference between current assets and current liabilities. The document also discusses the need for working capital, including operating cycles, permanent vs temporary working capital, and factors that cause changes in working capital levels. It provides examples of estimating current assets and liabilities to compute the net working capital required.
The document defines working capital as the capital required to finance short-term operating needs like current assets. It discusses the different types of working capital including gross and net working capital. It also covers key concepts related to working capital management such as operating cycle, determinants of working capital needs, and approaches to financing current assets using long-term vs short-term sources of funds.
The document discusses working capital, which is the cash needed for day-to-day business operations and is calculated as current assets minus current liabilities; it also covers liquidity ratios like the current ratio and acid test ratio to measure a business's ability to pay debts, and risks like overtrading that can occur if too much business is taken on without sufficient working capital. Managing working capital effectively through inventory, debtors, creditors and cash flow is important for business success.
Management of Working Capital- Britannia Industries Ltd.Nikita Jangid
The document discusses working capital and its management. It defines working capital as the capital required for financing day-to-day business operations. Shortage of working capital can cause business failures while sufficient working capital is important for business success and liquidity. The document also discusses different types of working capital like permanent working capital and temporary working capital. It outlines the goals of working capital management as ensuring sufficient cash flow and balancing current assets and liabilities. Key factors that determine working capital requirements include the nature of industry, sales volume, inventory and receivables turnover, and the production cycle.
The document defines working capital as assets required for the day-to-day operations of a company, such as raw materials, wages, rent, and advertising. It then discusses the different kinds of working capital, including gross vs net working capital and permanent vs temporary working capital. Some key points made include that gross working capital refers to a firm's total investment in current assets, while net working capital is current assets minus current liabilities. It also explains that permanent working capital remains until the business closes, while temporary working capital is needed for short periods.
Chapter 15 The Management Of Working CapitalAlamgir Alwani
The document discusses key concepts related to working capital management. It defines working capital as the assets and liabilities used for day-to-day operations, including cash, receivables, inventory, payables, and accruals. The objective is to manage working capital efficiently with minimal funds tied up in short-term assets while balancing operational needs. Short-term financing options are also reviewed, including spontaneous financing from payables/accruals, bank loans, commercial paper, and asset-based lending secured by receivables or inventory. Cash and receivables management techniques aim to accelerate cash inflows and outflows.
This document discusses working capital and its components. It defines working capital as the capital required to finance short-term operating needs such as inventory, accounts receivable, and cash. It also discusses the operating cycle as the continuous flow of cash being converted into inventory, then receivables, and back into cash. Finally, it notes that companies must determine the optimal level of working capital to support operations without having excess funds tied up in current assets.
ZA
Working capital management is important for business success. Gross working capital refers to total current assets, while net working capital is current assets minus current liabilities. Many factors affect a business's working capital requirements, including its nature, size, growth rate, production cycle, credit and purchasing policies, availability of materials and credit, profit levels, taxes, and price changes. Determining the optimal level of working capital is necessary.
- Working capital refers to short-term funds used for day-to-day operations, including current assets like inventory, accounts receivable, cash. It allows a company to operate smoothly by financing current assets.
- The goal of working capital management is to maintain sufficient liquidity to meet operating needs while avoiding excess or inadequate working capital levels, which are both problematic.
- Key concepts include gross working capital (total current assets), net working capital (current assets - current liabilities), and operating cycle (time from purchasing inventory to collecting cash from sales).
The document provides an overview of working capital, including definitions, concepts, and management. It defines working capital as the capital required for financing short-term assets like cash, inventory, and receivables. There are two concepts of working capital - the balance sheet concept focuses on current assets and liabilities, while the operating cycle concept looks at cash flows through purchasing, production, and sales cycles. Proper management of working capital is important, as both excess and inadequate working capital can hurt a business. Factors like industry, sales, and inventory turnover affect working capital needs. Forecasting and estimating working capital requirements involves considering items like materials, production timelines, credit terms, and cash flows.
The document discusses the nature, concepts, objectives, and determinants of working capital management. It provides definitions of key terms like current assets, current liabilities, gross working capital, net working capital, and approaches to determine an appropriate financing mix. The document also discusses forecasting working capital requirements and factors to consider. It summarizes a research paper that analyzed trends in working capital management and its impact on the performance of Mauritian small manufacturing firms. The study found a relationship between profitability and various working capital measurements.
This document provides an overview of a course on Managerial Accounting taught by Dr. Varadraj Bapat. It discusses the need to understand accounting and finance concepts for management purposes. It also summarizes the key differences between financial accounting, cost accounting, and management accounting. Finally, it provides a high-level overview of key financial statements like the balance sheet and income statement and how they are used.
The document discusses financial transformation and outsourcing finance functions to reduce costs and improve efficiency; it proposes that Accuserv Corporate Advisors can help companies outsource accounting, finance, budgeting and reporting to handle non-core activities and free up management time, using a customized approach based on the company's needs and culture. The company aims to provide timely and reliable financial information to stakeholders through qualified finance professionals and a skilled team.
Wealthplanned! Financial Plannning and Wealth Management softwareCMC Ltd.
WealthPlanned is INdia's 1st integrated Financial Planning and Wealth Management solution on cloud. It is also available on Enterprise model. From CMC Ltd., a TATA group company
ex of my work for a client: Wealthplanned presentationPravin Gandhi
- Enjoyed branding Wealthplanned (tm of CMC Ltd.) as "Art of Making Your Clients Affluent"
- Packaged an integrated offering of Financial Planning and back office Wealth Management software
- on in-house or cloud platform;
- created awareness of product through linkedin and social media,
- designed promotional material
** this presentation is freely distributed on online media by client for procuct awareness **
This document provides an overview of an accounting course for managers. It outlines the course objectives, which include understanding management and cost accounting techniques, performing financial analysis, calculating financial ratios, and preparing statements of cash flows and budgets. It also outlines the evaluation criteria and covers topics like the need for accounting, definitions of accounting, the functions and role of accounting/accountants, and accounting services. The overall purpose is to introduce managers to key accounting concepts and financial reporting.
Management accounting provides information to managers for planning, decision making, performance evaluation, and control. It deals with internal reporting for managers as opposed to financial accounting which prepares external financial reports for stakeholders. Some key differences are that management accounting is not confined to only financial data, focuses on future forecasts and budgets, and helps managers control operations. It covers areas like cost accounting, decision analysis, performance evaluation, and budgeting.
AlgorithmicHomework is an online homework platform that provides interactive questions, feedback, and assessment tools for accounting courses. It offers hundreds of engaging questions in different formats and levels of difficulty. Detailed step-by-step solutions are provided as feedback. Instructors benefit from features like anti-cheating and auto-grading. Questions contain variable values so answers can't be copied. Content is customized to match course objectives and is continually updated based on instructor feedback.
This document discusses key concepts in finance including financial accounting, management accounting, working capital management, and capital budgeting. It provides definitions and comparisons of finance and accounting, outlines tools and objectives of financial management like profit and shareholder wealth maximization, and explains various techniques for planning, decision making, and performance evaluation. The key roles of the CFO in areas like planning, controlling resources, and audit are also summarized.
Labdhie Associates is a financial outsourcing firm that provides business process management and finance & accounting services. Their team of experts can help clients achieve their goals across operations, compliance, and management reporting. They offer a range of services including bookkeeping, financial reporting, payroll processing, and tax preparation using applications like QuickBooks, Tally, and Oracle. Labdhie prioritizes data security and quality control and believes their approach of thorough planning and feedback can deliver high-quality services to clients while also providing cost savings compared to in-house resources.
Here are the journal entries for the transactions:
1. Sold goods to X for cash Rs. 55,000
Dr. Cash Rs. 55,000
Cr. Sales Rs. 55,000
2. Deposited Rs. 50,000 into bank
Dr. Bank Rs. 50,000
Cr. Cash Rs. 50,000
3. Purchased stationery Rs. 400
Dr. Stationery Rs. 400
Cr. Cash Rs. 400
4. Purchased goods from Sen on credit Rs. 2,00,000
Dr. Sen Rs. 2,00,000
Cr. Purchases Rs. 2
Financial and management accounting notes @ mba bkBabasab Patil
This document provides an overview of financial and management accounting. It discusses key topics such as the definition of accounting, the differences between financial and management accounting, accounting standards, books of accounts, financial statements, ratio analysis, fund flow statements, cash flow statements, budgeting, and capital budgeting. The document is divided into 6 units that will cover these various accounting concepts and techniques in more depth across 15 lessons.
This document provides an overview of financial and management accounting. It discusses key topics like the definition of accounting, the branches of accounting including financial accounting and management accounting, and the differences between them. The document also outlines several units that will be covered, including financial statement analysis, ratio analysis, fund flow statements, cash flow statements, budgeting, and capital budgeting.
The document provides an illustrative list of training programs across various finance and business domains including financial reporting, investment banking, wealth management, corporate finance, regulatory compliance, risk management, business acumen, capital markets, credit and finance, mutual funds, and insurance. The programs cover topics such as accounting, financial modeling, taxation, risk analysis, sales management, and leadership development. The training programs can be customized and delivered pan-India in preferred regional dialects.
The document discusses key concepts in management accounting including accounts, debits and credits, classification of accounts, rules of debit and credit, financial statements, and the differences between financial accounting, cost accounting, and management accounting. It provides details on the components and purpose of key financial statements like the balance sheet, profit and loss statement, and cash flow statements. It also explains concepts like assets, liabilities, equity/capital, revenues, and expenses as they relate to accounting.
New York Institute of Management provides Premier Executive Education Solutions. We are committed to advance the management practice and enhance organizational performance by creating and disseminating business knowledge and making it relevant, effective and universally accessible.
To find out more about our Certificate and Course Portfolio of programs please visit www.nyimexec.com
MBA 5004 Fundamentals of Accounting -2.pptxSameeraGamage1
This document provides an overview of the fundamentals of accounting concepts for an MBA program. It defines key elements of financial statements such as assets, liabilities, equities, income and expenses. It also defines accounting concepts like the cost concept, entity concept, matching concept, and materiality concept. Additionally, it discusses management accounting, cost classification, and the differences between financial and management accounting.
Labdhie Associates is a financial outsourcing firm that provides business process management and finance & accounting expertise. Their team has deep understanding of business processes and technical expertise to diagnose problems and offer solutions. Their goal is to understand client needs and exceed expectations by helping clients achieve their goals across operations, compliance, and management reporting. They offer services including bookkeeping, financial reporting, payroll processing, business plans, and tax returns. Their approach involves detailed planning, obtaining and processing input data, delivering outputs, and obtaining feedback to improve services. Clients can expect benefits like dedicated experts, flexible processes, aggressive pricing, data security, and commitment to high quality service.
This document provides an overview of basic financial accounting terms and concepts. It defines key terms like assets, liabilities, equity, income, and expenses. It explains the objectives of accounting as allowing better communication in business and understanding financial statements. It also defines accounting, describes the accounting information system and how it processes transactions into financial reports for various users. Finally, it outlines some advantages and limitations of accounting information and the role of accountants.
This presentation has been uploaded by Public Relations Cell, IIM Rohtak to help the B-school aspirants crack their interview by gaining basic knowledge on Finance.
Similar to Ma 1.1 fundamentals of managerial accounting2 (20)
The income statement discloses the financial performance of an entity over an accounting period. It measures the net income generated by measuring revenues earned and expenses incurred. The income statement includes elements such as income, expenses, gross profit, and net profit. It can be presented in short format showing key line items or in a detailed format as prescribed by accounting standards.
The document summarizes Ambedkar's critique of Marxism by comparing the philosophies of Buddha and Karl Marx. It notes that Buddha established communism within the Sangh (monastic order) without dictatorship, through changing people's minds and dispositions via teachings, rather than force. In contrast, the means of Communism emphasized by Marx were violence and dictatorship of the proletariat. While Communism aims for equality, it risks sacrificing fraternity and liberty, which are also needed. Ambedkar argues Buddha's approach of changing minds voluntarily may be better able to achieve equality along with fraternity and liberty.
Dr. BhimRao Ambedkar's speeches are replete with stimulating economic thoughts. He is probably the first thinker to analyse ancient Indian commerce and economic dimensions of social maladies in India.
Pl see his economic views in this downloadable PPT
Dr, Ambedkar has written very good thesis on Ancient Indian Commerce.
Bharat had very well developed Agriculture, manufacturing, trade and services since ancient time.
1. The document discusses the concept of self-management according to Indian philosophy. It explains that self refers to one's total personality including character, behavior, and attitude rather than just the external appearance.
2. It describes that self-management can be achieved by improving behavioral traits like communication skills, relationships, and restoring ethics. This involves cultivating a healthy mind and body.
3. A healthy body requires discipline in nutrition, hygiene, exercise and yoga. A healthy mind is free from stress and can be achieved through preventing accumulation of complexes and observing oneself non-reactively.
1) The document discusses the history of currency in India from ancient times to modern times. It describes the evolution of currency from commodity money like gold and silver in ancient texts to early coinage systems in places like Indus Valley civilization and Mahajanapadas.
2) Paper currency was first developed in China in the form of flying money during the Tang dynasty. Later, the earliest banknotes emerged in Europe issued by the Swedish central bank in 1661.
3) In India, the rupee originated from the silver coin rupyaka and was the standard currency during Mughal rule. After British East India company took over administration, the coinage system evolved further with rupees and mohurs
History of Currency : Ancient Coinage, paper, Indian Rupee
Evolution Coins, to paper to Bank Money
Financial Inclusion
Reforms - Adhar cards,Jan Dhan Yojana, GST
Benefits of GST
Why demonetisation is needed?
Suggested by Dr. Ambedkar
Benefits - Unearthing Black Money, Revenue to Govt., Shift to Bank Money
welcomed globally.
Going Cash-Less
Lets learn and Teach Digital Cash
Indian indigeneous economics lokmanthan 2016Varadraj Bapat
This document discusses the key points of Indian indigenous economics compared to Western economic models like capitalism and communism. It provides an overview of the Indian and US economies, including GDP, inflation rates, and foreign reserves. It then contrasts Western economic thoughts like capitalism and consumerism with Bharatiya/Indian concepts. Some of the strengths of the Indian economic model highlighted include demographic dividend, family values, social capital, and sustainable thinking. Gold accumulation by Indian families is also discussed. Charts on household debt, savings rates, and historical world GDP shares are included.
History of Currency : Ancient Coinage, paper, Indian Rupee
Evolution Coins, to paper to Bank Money
Financial Inclusion
Reforms - Adhar cards,Jan Dhan Yojana, GST
Benefits of GST
Why demonetisation is needed?
Suggested by Dr. Ambedkar
Benefits - Unearthing Black Money, Revenue to Govt., Shift to Bank Money
welcomed globally.
Short-term pains
The document discusses the concept of sustainable development including its origins and implications. It begins by defining sustainability and tracing the key historical developments in conceptualizing sustainable development, from the 1972 Stockholm Conference to more recent climate agreements. It then outlines some initiatives in the sustainable development arena and ways of measuring sustainability through indicators. Finally, it discusses the relationship between development and ecology, highlighting perspectives from Hindu traditions that emphasize living in harmony with nature.
Cost Volume Profit (CVP).
Introduction
Fixed costs
Variable costs
Semi variable costs
Contribution margin
Break even point
PV Ratio
BEP ANalysis.
break even point
Cost-volume-Profit.
Introduction to cost managerial accountingVaradraj Bapat
This document provides an introduction to cost accounting concepts from an expert at the Indian Institute of Technology Mumbai. It defines key cost accounting terms like direct costs, indirect costs, fixed costs, variable costs, and period costs. It also outlines different ways to classify costs such as by element, function, variability, and relevance. The objectives of cost accounting are explained as ascertaining costs, cost control and reduction, and assisting management with decision making.
This document discusses the strengths of the Indian economy. It notes that India is experiencing a demographic dividend due to its large working age population as a result of declining fertility and mortality rates. This demographic shift reduces the dependency ratio and increases the size of the productive workforce, presenting an opportunity to stimulate economic growth. The document also provides statistics on India's GDP in nominal and PPP terms, GDP growth rates, inflation rates, public debt as a percentage of GDP, budget deficit, foreign exchange reserves and credit ratings. It thus summarizes key indicators and highlights India's demographic dividend as a major economic strength.
Introduction /Concepts of GST
Existing & Proposed Tax Structure in India
Model/Components of GST
Benefits under GST
Applicability & Rate in GST Regime
Impact of GST
GST Set off Chain & its methodology
Functioning of GST
Others Areas of GST
Key Amendments in Bill
Sector Wise Impacts
Flaws of the GST Model
Conclusion.
Education is the manifestation of the perfection already in man.”
- Swami Vivekananda
Indigenous Education.
Our goal should be making education for all free of cost.
Commercialization of Education.
Government Funding.
Corporate Funding.
Funding from Society.
Good Governance and Transparency in Education.
Education Loan.
Technology Enabled Learning (TEL).
Bridging Social Gaps.
Learning with earning.
WE want the Education by which character is formed, strength of mind is increased, the intellect is expanded, an by which one can stand on one's own feet.
corporate goverance Gobal models.
There are 4 Models.
ANGLO-US Model.
Japanese German model.
China Model.
Indian Model.
Salient ideas and thoughts on principals of governance as revealed by our ancient scriptures.
Basic values of Indian principals of governance.
India is not a story from Rags to Riches.
Strengths of India
The magic mantra of ‘Demographic Dividend’
The Integral Approach .
Domestic Consumption drives growth.
All about dr.ambedkar .
summary of thesis book of amedkar.
Ancient Indian Commerce.
National Dividend of India-A Historic and Analytical Study
"The Evolution of Provincial Finance in British India",
"The Problem of the Rupee: Its Origin and Its Solution".
Administration and Finance of the East India Company
SMALL HOLDINGS IN INDIA AND THEIR REMEDIES.
"States and Minorities"
"Buddha or Karl Marx“.
COMMERCIAL RELATIONS OF INDIA IN THE MIDDLE AGES OR
THE RISE OF ISLAM AND THE EXPANSION OF WESTERN EUROPE
world economic history.
India is not a story from Rags to Riches.
Dr. Ambedkar considered both Capitalism भांडवलशाही and Communism मार्क्सवाद as incomplete models.
Post 1990
Communism lost completly
Capitalism got converted into Consumerism.
In india, we should stop cpying failed Western models (Both Communism and Capitalism).
we need a model based on Indian ethos.
The document discusses the concept of self from the perspective of Indian philosophy. It explains that according to this view, the self has three aspects - a physical body composed of the five elements, an energy body governed by prana or life force, and a mind that processes thoughts, emotions and feelings. Developing all three aspects through practices like yoga, pranayama and meditation is important for cultivating a healthy self.
Personality development according to punchakosh 2016Varadraj Bapat
Personality development according to punchakosh
there are five types of koshas
Anamay kosh, Pranamay kosh, Manomay kosh, Vignayanmay kosh, Aanandamay kosh.
3. LEARNING OBJECTIVES
Need to Know About Accounting
Managerial Accounting
Financial Statements - Balance Sheet,
Income Statement
Managerial Accounting - Dr. Varadraj Bapat
4. Need to Know About Accounting
Need to Know About Accounting and
Finance
Managerial Accounting - Dr. Varadraj Bapat
5. “Why do I need to learn about finance …
I am very good in my
own area of specialization”
How would you react to the above
statement?
Managerial Accounting - Dr. Varadraj Bapat
6. The job content
Management
As & Finance
you Expertise
mo
ve
up
.. Functional
Expertise
Managerial Accounting - Dr. Varadraj Bapat
7. About Managerial Accounting
What is Accounting?
Financial Accounting, Cost Accounting and
Management Accounting
Financial Accounting and Financial
Management
Finance and complexity of organisation
Managerial Accounting - Dr. Varadraj Bapat
8. Accounting
Language of Business
Performance is reported and
evaluated in financial terms
Knowledge is useful for
personal investment and tax
planning as well
Managerial Accounting - Dr. Varadraj Bapat
9. Accounting
It is not necessary to become
accountant
But its very useful if every one
understands the accounting
and financial concepts and
terminology properly
Managerial Accounting - Dr. Varadraj Bapat
10. Need to Learn Accounting
Itassists in management
Will help in planning,
organisation and control of
business
Leads to increase in efficiency of
business
Profit maximization
Managerial Accounting - Dr. Varadraj Bapat
11. Streams of Accounting
Financial Accounting, Cost
Accounting and Management
Accounting
Let us understand the
similarities and difference in
these three streams of
accounting
Managerial Accounting - Dr. Varadraj Bapat
12. Financial Accounting
Recording of Financial
Transactions
Reporting of Financial Results
Preparation of Financial
Statements
Targeted to External Users
Managerial Accounting - Dr. Varadraj Bapat
13. Cost Accounting
Recording of Costs
Analysis of Costs
Preparation of Cost
Statements
Targeted to Internal Users
Managerial Accounting - Dr. Varadraj Bapat
14. Management Accounting
Recording of Financial & other
data
Analysis of Financial and other
information
Preparation of Statements for
Managerial Decisions
Managerial Accounting - Dr. Varadraj Bapat
15. Management Accounting
Targeted to Internal Users -
All levels of Management
This is a broader concept
encompasses Financial and
Cost Accounting
Managerial Accounting - Dr. Varadraj Bapat
16. Meaning of Management
Accounting
Any form of accounting which
enables a business to be
conducted more efficiently can
be regarded as Management
Accounting. (Institute of
Chartered Accountants of India-
ICAI)
Management Accounting is the
Managerial Accounting - Dr. Varadraj Bapat
17. application of professional
knowledge and skill in the
preparation of accounting
information in such a way as to
assist management in the formation
of policies and in the planning and
control of operations of undertaking.
(International Capital Market
Association, London- ICMA)
Managerial Accounting - Dr. Varadraj Bapat
18. Financial Management
Financial Accounting, Managerial
Accounting and Financial
Management: Relationship
Financial Management deals with
raising and utilization of funds
Raising of funds may include
Cost of Capital, Capital Structure
Managerial Accounting - Dr. Varadraj Bapat
19. Financial Management
decisions, Capital Markets, IPOs
and so on
Financial Management deals with
raising and utilization of funds
Utilization of funds may include
Capital Budgeting, Portfolio
Management, Working Capital
Management and so on
Managerial Accounting - Dr. Varadraj Bapat
20. Managerial V/s Financial
Accounting
Accounting System
(accumulates all
accounting data)
Managerial Accounting Financial Accounting
Information for decision Published financial
making, and control statements and other
of an organization’s financial reports.
operations.
Internal External
Users Users
Managerial Accounting - Dr. Varadraj Bapat
21. Complexity of Organisation
Finance and complexity of
organisation
As the organizations grow, they
become complex
Ownership and Management are
separated
Managerial Accounting - Dr. Varadraj Bapat
22. Complexity of Organisation
Ownership is widespread
This increases the importance of
Finance function
Managerial Accounting - Dr. Varadraj Bapat
23. About this course
Managerial Accounting Course
The course will cover Financial
Accounting, Cost Accounting
and Management Accounting
Financial Management is dealt
in a different course
Managerial Accounting - Dr. Varadraj Bapat
24. Financial Statements
What are they?
Which are important Financial
Statements?
What purposes do they serve?
Managerial Accounting - Dr. Varadraj Bapat
25. Company or Organisation
PROVIDERS RESOURCES
OF FOR
MONEY BUSINESS
These two are
always equal
Managerial Accounting - Dr. Varadraj Bapat
26. The Basic Business Model
Infrastructure
The
Money
Money Collection
Cycle Procurement
Billing
Value
Consumption
Addition Delivery
Cycle
People
Managerial Accounting - Dr. Varadraj Bapat
27. Infrastructure
Money
Collection Costs
Procurement
Billing
Consumption
Delivery
To be profitable, our revenue should be more than
our cost ! This would make the organisation
stronger, healthy and long-lasting.
Managerial Accounting - Dr. Varadraj Bapat
28. Balance Sheet Profit & Loss Account
Liabilities Assets Infrastructure Revenue
Capital Costs
Fixed Assets Money
Borrowings from Collection
Banks / FIs Current Assets
Procurement
or Working Outstanding
Current & Inventory
Capital
Liabilities
Consumption Profit/ Loss
Delivery &
& WIP
Human Assets Billing
People
Balance Sheet shows the financial position of
organisation, while Profit & loss Account shows
the profitability of organisation.
Managerial Accounting - Dr. Varadraj Bapat
29. Balance Sheet shows the
cumulative position of resources
(assets) and sources of funds
(liabilities) at the end of the year.
Profit & Loss Account shows
‘Revenue & Cost’ performance
during a quarter/ year.
Managerial Accounting - Dr. Varadraj Bapat
30. Balance Sheet Profit & Loss Account
Liabilities Assets
Infrastructure Revenue
Capital Costs
Reserves Fixed Assets Money
Borrowings Collection
(eg.from Banks) Current Assets
or Working Procurement
Outstanding
Current Capital & Inventory
Liabilities
Consumption Profit
Delivery &
& WIP
Human Assets Billing
People
Profits build up reserves & enable an
enterprise to acquire new assets without
borrowing money. Exactly the way we can
acquire assets for our use without borrowing.
Managerial Accounting - Dr. Varadraj Bapat
31. Balance Sheet Profit & Loss Account
Liabilities Assets
Infrastructure Revenue
Capital Costs
Fixed Assets
Reserves Money
Borrowings Collection
Current Assets
(eg.from Banks)
or Working Procurement
Capital Outstanding
Current & Inventory
Liabilities
Consumption Profit
Delivery &
Human Assets & WIP
Billing
People
Profits build up reserves & enable an enterprise to acquire
new assets without borrowing money. Exactly the way we
can acquire assets for our use without borrowing.
Managerial Accounting - Dr. Varadraj Bapat
32. Balance sheet may be prepared
at any time showing the position
as on that date.
Profit and loss account may be
prepared for any particular
period.
Managerial Accounting - Dr. Varadraj Bapat
33. Balance Sheet
Owners Funds Fixed Assets
Non Current Non Current
liabilities Investments
Current Other non
liabilities current assets
Current
Assets
Managerial Accounting - Dr. Varadraj Bapat
34. The Annual Report
Usually Contains ...
– financial statements which consist
of
• Balance sheet, Profit & Loss A/c
• Cash Flow Statements
• notes to the financial statements
• disclosure of accounting policies
Managerial Accounting - Dr. Varadraj Bapat
35. The Annual Report
Usually Contains ...
- Chairman’s Statement
- Board of Directors & Committees
- Directors Report
- Directors Responsibility Statement
- Auditors Report
- Report on Corporate Governance
Managerial Accounting - Dr. Varadraj Bapat
36. The Annual Report
Usually Contains ...
- Disclosure regarding Employee
Stock options Schemes
- List of employees receiving
remuneration exceeding Rs. 60
Lakhs
- Conservation of Energy Reports
Managerial Accounting - Dr. Varadraj Bapat
37. The Annual Report
Usually Contains ...
- Consolidated Financial Statements
- Subsidiaries Financial Statements
- Management Discussion and
Analysis
- Annual General Meeting Notice
Managerial Accounting - Dr. Varadraj Bapat