MBA Program
Academic Year 2023-24
Semester -1
Accounting for Managers (AFM)
Concept Diary
Teaching Faculty:
1. Prof. T.Sita Ramaiah
2. Prof. Bhanu Sireesha
3. Prof. Satish Tiwari
4. Prof. Richa Gupta
5. Prof. D.S.Prasad
6. Prof. P.Srikanth
7. Prof. Narsa Gaud
8. Prof. Abdul Rishad
9. Prof. Narsimhulu Siddula
10.Prof. Anand V
11.Prof. Manisha Singh
12.Prof. Kiran
13.Prof. Ashok Anand
14.Prof. Karthik MV
Having completed the session from 1- to -33 the students are expected to completely
understand of at least the following concepts, know their relevance and its applicability
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OVERVIEW OF ACCOUNTING
1. Accounting-need and purpose
2. Accounting information
3. Event and Transactions
4. Users of accounting information
5. Five important statements (introduction)
6. Accounting Cycle
ACCOUNTING CONCEPTS
1. Money Measurement Concept
2. Entity Concept
3. Going Concern Concept
4. Cost Concept
5. The Dual Aspect Concept
6. Accounting Period Concept
7. Conservatism Concept
8. Realization Concept
9. Matching Concept
10. Accrual Concept
11. Materiality Concept
12. Consistency
13. Full disclosure
ACCOUNTING TERMINOLOGIES
1. Assets
2. Liabilities
3. Owner’s equity
4. Revenue
5. Expenses
6. Profit
7. Income from other sources and Gains
8. Loss
RECORDING OF THE TRANSACTIONS
1. Types of accounts
A. Personal account
B. Real account and
C. Nominal accounts
2. Accounting equation
3. Rules of debit and credit
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4. Journalizing the transactions
5. Transaction Analysis
6. Modern Rule of Debit and Credit
CLASSIFYING THE TRANSACTIONS
1. Understand the method of preparation of ledger
SUBSIDIARY BOOKS
Types, format and purpose of:
1. Cash book
2. Sales Book
3. Purchases book
4. Sales returns book
5. Purchase returns book
6. Trade receivables book
7. Trade payables book
8. Journal proper
9. Petty Cash
INVENTORY
1. Cost of Inventories
2. Cost of Purchase
3. Cost of conversion
4. Perpetual Inventory System
5. Periodic Inventory System
6. First- in- first -out method
7. Weighted Average method
8. Specific identification method
9. Last –in -first-out method
10. Net Realizable Value
11. Cost of Goods sold
12. Closing Stock
DEPRECIATION AND AMORTIZATION
1. Tangible and Intangible Fixed assets: Distinction
2. Tangible Fixed Assets: Meaning, Identification and Significance of PPE
3. Meaning, Significance and Determinants of Depreciation
4. Methods of Depreciation: Straight Line Method (SLM) and Written Down Value
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5. Impact of SLM and WDV on Profits and Tax.
6. Intangible Fixed Assets: Their meaning, significance, amortization and
impairment (Ind AS-38)
7. Profit/Loss on sale of old Assets
8. Book value / Market value of Assets
9. Residual / Scrap Value
10. Economic Life of Assets and Useful Life of Assets
11. Depletion
TRIAL BALANCE
1. Ascertainment of arithmetical accuracy
2. Debit Balance in Account
3. Credit Balance in Account
FORMAT OF FINANCIAL STATEMENT
1. Schedule 3 of Companies Act 2013(as amended)
2. Statement of profit and loss
3. Statement of changes in equity
4. Balance sheet
5. Notes to accounts
6. Shares
7. Debentures
8. Non-current and current assets
9. Non-current and current liabilities
10. Intangible Assets
11. Financial Assets
12. Change in Inventories
13. Employee Benefits Expenses
14. Liquid Assets
15. Operating Expenses
16. Operating Income
17. EBIT
18. EBITDA
19. Discontinued Operations
20. Earnings per Equity share
21. Other Comprehensive Income
22. Exceptional Items
23. Adjustment of depreciation
24. Adjustment of closing stock
25. Adjustment of provisions for bad debts
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26. Adjustments of outstanding expenses
27. Adjustment of prepaid expenses
28. Adjustment of incomes received in advance
29. Adjustment of accrued incomes
PREPARATION OF CASH FLOW STATEMENT
1. Cash flows from different types of activities
a. Cash flow from operating activities
b. Cash flow from investment activities
c. Cash flow from financing activities
2. Change in Working Capital
3. Non-operating expenses
4. Non-cash expenses
5. Non- operating incomes
6. Non –cash incomes
7. Cash and Cash Equivalents
8. Capital Expenditure
9. Difference between CFO and Net Income
ANNUAL REPORT
1. Understand how to read annual report of Tata Steel Ltd
2. Letter to shareholders
3. Directors Report
4. Financial Highlights
5. Management discussion analysis
6. Notes to financial statements
7. Auditor’s report
8. Corporate governance report
COST CLASSIFICATION
1. Cost, types of costs, elements of costs
2. Direct cost
3. Indirect cost
4. Opportunity cost (imputed cost)
5. Sunk cost
6. Committed cost
COST SHEET
1. Unit cost
2. Prime cost
3. Works cost
4. Cost of production
5. Cost of goods sold
6. Factory overheads
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7. Administrative overheads
8. Selling and Distribution overheads
9. Cost of sales
10. Profit
11. Sales
12. Sale of scrap
13. Bad debts and provisions should be ignored in cost sheet
14. Finance costs are to be ignored in cost sheet
COST BEHAVIOR AND MANAGEMENT
1. Fixed, variable and semi variable Costs
2. Marginal cost
3. Contribution
4. Profit/volume ratio
5. Break-even point
6. Margin of safety
7. Desired level of profitability
DECISION MAKING
1. Decisions Involving Alternative Choices
2. Differential cost
3. Avoidable fixed cost and unavoidable fixed cost
4. Make or Buy
5. Dropping a product line
6. Shut down / Subcontract
7. Acceptance of Special Order
