afl - all five units ppt
Post on 08-Jul-2018
230 Views
Preview:
TRANSCRIPT
-
8/19/2019 Afl - All Five Units Ppt
1/260
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTS AND
FINANCE FOR LOGISTICIANS
-
8/19/2019 Afl - All Five Units Ppt
2/260
-
8/19/2019 Afl - All Five Units Ppt
3/260
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
INSTRUCTIONS
• ANSWER ALL THE QUESTIONS• WRITE IN POINTS
AND NOT IN PARAGRAPH• IF 5 MARKS, WRITE MINIMUM 2 PAGES• IF 10 MARKS WRITE, WRITE MINIMUM PAGES• CASE STUDY ! COMPULSORILY ATTEND
• IN PPTS, ONLY HINTS ALONE GIVEN, U DEVELOPACCORDING TO QUESTIONS
-
8/19/2019 Afl - All Five Units Ppt
4/260
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
SYLLABUS
• UNIT I:• • F"#$#%"$& A%%'(#)"
#*+ M$#"#* '- .'(& #)$%%'(#)"#*, M$#"#*, #$)( $#. "3')$#%A%%'(#)"#* %%&, $%%'(#)"#* 4($)"'# 6'(#$&, L.*$#. T"$& B$&$#% A%%'(#)"#* %'#%3)7 $#.%'#8#)"'#7, F"#$#%"$& 7)$)#)79 P'-") : L'77$%%'(#) : B$&$#% 7;) F"#$#%"$& 7)$)#) A#$&7"79
C'3$$)"8 A#$&7"7, C''# 7"
-
8/19/2019 Afl - All Five Units Ppt
5/260
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
• UNIT II• • F"#$#%"$& S)$)
#) A#$&7"7 9 R$)"' $#$&7"7 !C&$77"-"%$)"'# '- $)"'7, A.8$#)$*7 : D"7$.8$#)$*7 9F(#. -&'= 7)$)#)7 $.8$#)$*7 $#. ."7$.8$#)$*79M$*"#$& %'7)"#* ! C'7) V'&( P'-") $#$&7"7 ! B$>E8# $#$&7"7 ! BEP, P/V $)"', MS
•
-
8/19/2019 Afl - All Five Units Ppt
6/260
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
• UNIT III:• I#)'.(%)"'# )' F"
#$#%"$& M$#$*#) ! N$)( '-F"#$#%"$& $#$*#) !O@%)"87 '- -"#$#%"$&$#$*#) 9F"#$#%"$& D%"7"'#79 O*$#"
-
8/19/2019 Afl - All Five Units Ppt
7/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
• UNIT IV• S'(%7 '- %$3")$& 9C'7) '- C$3")$& ! M$#"#* $#.
S"*#"-"%$#% ! C'3'##)7 ! C'7) '- E4("), C'7) '-D), C'7) '- P-. %$3")$&, C'7) '- )$"#.$#"#*7 $#. ="*;). $8$* %'7) '- %$3")$& C$3")$&(.*)"#* ! $#"#* ! D"--#) );'.7 ! P$$%>, N)P7#) V$&(, I#)#$& $) '- )(#, P'-")$"&")"#. $#. $8$* $) '- )(#
•
-
8/19/2019 Afl - All Five Units Ppt
8/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
• UNIT V• • F"#$#%"$& ,O3$)"#* $#. C'"#. L8$*7 !M$#"#*
'- C$3")$& S)(%)( 9D)"#$#)7 '- %$3")$&7)(%)( D"8".#. .%"7"'# ! D"8".#. 3'&"% 9 D"8".#.);'"7 ! W$&) $#. G'.'# '.&'- ."8".#. !S)$"&") '- ."8".#. ! S;$ 73&") ! B($%> '- 7;$7
•
-
8/19/2019 Afl - All Five Units Ppt
9/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
REFERENCES
• • 1 IMP$#., F"#$#%"$& M$#$*#), V">$7 3(&"7;"#*
;'(7 L)., ); .")"'#, 200• 2 P$7$##$ C;$#.$, F"#$#%"$& M$#$*#) T;' $#.
P$%)"%, T$)$ M%G$= H"&&, ); E.")"'#, 200• F"#$#%"$& $#. M$#$*#) $%%'(#)"#* R.. $#.
M'');
-
8/19/2019 Afl - All Five Units Ppt
10/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
UNIT 1
• ACCOUNTING+
• A%%'(#)"#* "7 ); 3'%77 '- %'&&%)"#*, %'."#*,%&$77"-"#* 7($"
-
8/19/2019 Afl - All Five Units Ppt
11/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
CLASSIFICATION (OR) BRANCHES OFACCOUNTING• FINANCIAL ACCOUNTING
– 6OURNAL, LEDGER AND TRIAL BALANCE – FINAL ACCOUNTS
• TRADING ACCOUNT• PROFIT : LOSS ACCOUNT• BALANCE SHEET
• COST ACCOUNTING – COST SHEET – STANDARD COSTING
• VARIANCE ANALYSIS• MANAGEMENT ACCOUNTING• 9 FINANCIAL STATEMENT ANALYSIS ! COMPARATIVE, COMMON SIZE, TREND ANALYSIS
–
CAPITAL BUDGETING – RATIO ANALYSIS – FUND FLOW STATEMENT – MARGINAL COSTING
• BREAK EVEN ANALYSIS• P/V RATIO• MARGIN OF SAFETY
BIM
-
8/19/2019 Afl - All Five Units Ppt
12/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
Financial acc!n"in#
• T; $"# 3(3'7 "7 )' $7%)$"# ); 3'-") ' &'77 $#.)' "#."%$) ); -"#$#%"$& 3'7")"'# '- ); %'3$#
• T; )=' "3')$#) 7)$)#)7 33$. "# -"#$#%"$&$%%'(#)"#* $ P'-") : &'77 $%%'(#)7 $#. B$&$#%
7;)• P'-") : &'77 $%%'(#)7 ! )' >#'= ); 3'-")$"&") '- );
%'3$#• B$&$#% 7;) ! )' >#'= ); -"#$#%"$& 3'7")"'# '- );
%'3$# '# $ 3$)"%(&$ .$)
BIM
-
8/19/2019 Afl - All Five Units Ppt
13/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
F!nc"in$%a&'an"a#$%n&%i*+"anc%*!+*$%,-c"i'$%!$$ . .inancial acc!n"in#
• B''> >3"#* -(#%)"'#7• C&$77"-"%$)"'# '- -(#%)"'#7• P3$$)"'# '- -"#$#%"$& 7)$)#)7• S**$)"#* -"#$#%"$& )$#7$%)"'#7• I#)3)$)"'# '- -"#$#%"$& .$)$• R3')"#* '- "#-'$)"'#• P'8"."#* $%%($) $#. &"$& "#-'$)"'#
BIM
-
8/19/2019 Afl - All Five Units Ppt
14/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
Lii"a"in$%&i$a&'an"a#$ . .inancial acc!n"in#
• H"7)'"%$& .$)$• F"#$#%"$& 7)$)#)7 -' ); #)3"7 $7 $ =;'&• I) -$"&7 )' ;&3 "# 3"% -"$)"'#• N') (7-(& "# %'7) %'#)'&• E8$&($)"'# '- 3'&"%"7 #') 3'77"&• A%)($& %'7)7 $&'# $ %'..• D'7 #') 3'8". "#-'$)"'# -' 7)$)*"% .%"7"'#
$>"#*• C'3&"%$). $#. )%;#"%$& 7(@%)• M'#)$ 7(@%)• C;$#%7 -' $#"3(&$)"'# ' W"#.'= .77"#*
BIM
-
8/19/2019 Afl - All Five Units Ppt
15/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
C$" acc!n"in#
• T; 3'%77 '- $%%'(#)"#* -' %'7) -' ); 3'"#) $)=;"%; 3#.")( "7 "#%(. ' %'")). )' );%'3$# '- ")7 (&)"$) &$)"'#7;"3 ="); %'7) %#)7$#. %'7) (#")7
l BIM
-
8/19/2019 Afl - All Five Units Ppt
16/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
F!nc"in$%A&'an"a#$%n&%i*+"anc%*!+*$%,-c"i'$%!$$ . c$" acc!n"in#
• A7%)$"#"#* %'7)• F"$)"'# '- 7&&"#* 3"%• C'7) %'#)'&• C'7) .(%)"'#• E8$&($)"'# '- 3-'$#%
E i Pl 2003 BIM
-
8/19/2019 Afl - All Five Units Ppt
17/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
Lii"a"in$%&i$a&'an"a#$ . c$" acc!n"in#
• I) "#8'&87 )'' $# -'7 $#. 7)$)#)7• I) "#8'&87 ' %&"%$& ='>• I) "7 %'7)& )' "#)'.(% $#. '3$)• I) .3#.7 '# -"#$#%"$& $%%'(#)"#* I- $# ' "#
-"#$#%"$& $%%'(#)"#* ="&& $--%) %'7) $%%'(#)"#* )''• I) "7 ."--"%(&) )' $7%)$"# ); -(&& &"$& %'7)• E$%; %'7) $%%'(#)$#) $ (7 ."--#) );'. =;"%;
%$) %'#-(7"'#• S"#% ."--#) %'3$#"7 (7 ."--#) );'.7, ") "7
."--"%(&) )' %'3$ ); %'3$#"7
E ti Pl t 2003 BIM
-
8/19/2019 Afl - All Five Units Ppt
18/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
Mana#n" acc!n"in#
• M$#$*#) $%%'(#)"#* "7 ); 37#)$)"'# '-$%%'(#)"#* "#-'$)"'# "# 7(%; $ =$ $7 )' $77"7)$#$*#) "# ); %$)"'# '- 3'&"% $#. "# ); .$ )'.$ '3$)"'#7 '- ); %'3$#
E ti Pl t 2003 BIM
-
8/19/2019 Afl - All Five Units Ppt
19/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
F!nc"in$%A&'an"a#$%n&%i*+"anc%*!+*$%,-c"i'$%!$$ . Mana#n" acc!n"in#
• T' ;&3 "# 3&$##"#* $#. 3'&"% -'(&$)"'#• T' ;&3 "# ); "#)3)$)"'# 3'%77• T' ;&3 "# .%"7"'# $>"#*• T' ;&3 "# %'#)'&&"#* 3-'$#%• T' ;&3 "# %''."#$)"#*• T' ;&3 "# '*$#"
-
8/19/2019 Afl - All Five Units Ppt
20/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
Lii"a"in$%&i$a&'an"a#$ . ana#n" acc!n"in#
• W$>#77 '- 7'(% %'.7• C'#7"7)#) --')7• M$#$*#) $%%'(#)"#* "7 #') $ 7(7)")()• M". ."7%"3&"#• R7"7)$#%• C'7)& "#7)$&&$)"'#• D8&'3#)$& 7)$*• S(@%)"8")
Executive Placement 2003 BIM
-
8/19/2019 Afl - All Five Units Ppt
21/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
U$+$ . acc!n"in# in.+a"in
• Internal users (Primary Users) of accounting information include the
following:
– Management: for analyzing the organization's performance and
position and taking appropriate measures to improve the company
results. – Employees: for assessing company's profitability and its consequence
on their future remuneration and job security.
– Owners: for analyzing the viability and profitability of their
investment and determining any future course of action.
• Accounting information is presented to internal users usually in the formof management accounts, budgets, forecasts and financial statements.
Executive Placement 2003 BIM
http://accounting-simplified.com/elements-of-financial-statements.htmlhttp://accounting-simplified.com/elements-of-financial-statements.html
-
8/19/2019 Afl - All Five Units Ppt
22/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
U$+$ . acc!n"in# in.+a"in/
• External users (Secondary Users) of accounting information include the
following: – Creditors: for determining the credit worthiness of the organization. erms of credit are
set by creditors according to the assessment of their customers' financial health. !reditors
include suppliers as well as lenders of finance such as banks.
– ax !uthorities: for determining the credibility of the ta" returns filed on behalf of the
company.
– Investors: for analyzing the feasibility of investing in the company. #nvestors want to
make sure they can earn a reasonable return on their investment before they commit any
financial resources to the company.
– Customers: for assessing the financial position of its suppliers which is necessary for
them to maintain a stable source of supply in the long term.
– "egulatory !uthorities: for ensuring that the company's disclosure of accountinginformation is in accordance with the rules and regulations set in order to protect the
interests of the stakeholders who rely on such information in forming their decisions.
Executive Placement 2003 BIM
-
8/19/2019 Afl - All Five Units Ppt
23/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTING CYCLE
• 6OURNAL 9RECORDING
• LEDGER 9CLASSIFYING
• TRIAL BALANCE 9SUMMARISING
• FINAL ACCOUNTS 9 INTERPRETING
– TRADING ACCOUNT – PROFIT : LOSS ACCOUNT FINANCIAL – BALANCE SHEET STATEMENTS
Executive Placement 2003 BIM
-
8/19/2019 Afl - All Five Units Ppt
24/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTING CYCLE/
• 6OURNAL+ – 6'(#$& "7 $ .$"& %'. '- (7"#77 )$#7$%)"'#7 – I) "7 $&7' %$&&. $7 .$ ''> – T; 3'%77 '- %'."#* )$#7$%)"'#7 "# ); @'(#$& %$&&.
6'(#$&"
-
8/19/2019 Afl - All Five Units Ppt
25/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTING CYCLE/
• FORMAT OF 0OURNAL
• SN' D$) P$)"%(&$7 LF D")R7 C.")R7
• N$ '- ); A/%• T' N$ '- ); A/%• N$$)"'#
Executive Placement 2003 BIM
-
8/19/2019 Afl - All Five Units Ppt
26/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTING CYCLE/
• ADVANTAGES OF 6OURNAL+ – I) .(%7 ); 3'77""&") '- '7 – I) 3'8".7 $# 3&$#$)"'# '- ); )$#7$%)"'# – I) 3'8".7 $ %;'#'&'*"%$& %'. '- $&& )$#7$%)"'#7 – 6'(#$& 3'8".7 %'.7 '- $&& (7"#77 )$#7$%)"'#7 "# '# 3&$% '# ); )" $#. .$) $7"7 – A&& )$#7$%)"'#7 $ %'.. '# ); $7"7 '- %"3)7 ' "&&, 7' = %$# %;%> $();#)"%") '- $%; @'(#$& #)"7
="); );" "&&7 –
T; "7 "#"( %;$#% )' $8'". $# 3$)"%(&$ )$#7$%)"'# %$(7 "# @'(#$& )$#7$%)"'#7 $ %'.. .$)$7"7 – A%%'(#)$#) =")7 8 @'(#$& #)7 #$$)"'# &&'= '- );$) @'(#$& #), 7' '); $(.")' %$# >#'= =;$) );
$7'# '- );$) @'(#$& #) "7 – I# @'(#$&, 8 )$#7$%)"'# "7 %'.. $-) .3 $#$&7"7 '- )=' $%%'(#)7 '# ); $7"7 '- .'(& #) 77), 7'
); "7 "#"( %;$#% '- "7)$> "# @'(#$& – 6'(#$& "7 ); $7"7 '- 3'7)"#* "# &.* $%%'(#)7 W"); $>"#* '- @'(#$&, $%%'(#)$#) %$# #') $> &.*
$%%'(#)7 – I- ); "7 "7)$> "# &.*, = %$# %)"- ") ="); ); ;&3 '- @'(#$& ' %)"- @'(#$& #) "# @'(#$& – A&& '3#"#* @'(#$& #)"7 , %&'7"#* @'(#$& #)"7 $#. $&& '); )$#7$%)"'#7 =;"%; "7 #') %'.. "# $# ');
7(7"."$ ''>7 , ="&& %'.. "# @'(#$& – 6'(#$& "7 $&7' #.. "# 8 )3 '- $%%'(#)"#* 7'-)=$ T;7 $%%'(#)"#* 7'-)=$ %$# $> $()' 77) '-
3'7)"#* @'(#$& #)"7 );" $()'$)"% 3'%77"#* , () $%%'(#)$#) (7) -. @'(#$& #)"7 "# @'(#$& $#.'); 73%"-"% 8'(%;7 '- @'(#$&
– I# @'(#$& , ); "7 '# %'&(# '- &.* -'&"' I) "7 8 "3')$#) -' %;%>"#* -#% '- $%; $%%'(#)73'7)"#* ="); ")7 '"*"#$& @'(#$& #)
Executive Placement 2003 BIM
-
8/19/2019 Afl - All Five Units Ppt
27/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTING CYCLE/
• DISADVANTAGES OR LIMITATIONS OF 6OURNAL+ – I) ="&& )'' &'#* "- $&& ); )$#7$%)"'#7 $ %'.. – D"--"%(&) )' $7%)$"# ); $&$#% '- $%; $%%'(#)
Executive Placement 2003 BIM
S h l f M S di S i i d E ll
-
8/19/2019 Afl - All Five Units Ppt
28/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTING CYCLE/
• LEDGER+ – L.* 3'8".7 $ 7($ '- 7""&$ )$#7$%)"'#7 $) '#
3&$% – I) "7 $ 7($ 7)$)#) '- %'3&) )$#7$%)"'#7 &$)"#* )'
$# $%%'(#) – L.* "7 %'#7".. $7 $"# ''> '- $%%'(#)7 – I) "7 %'#7".. )' ); 3"#%"3$& ''> '- $%%'(#)7 =;"%;
;&37 (7 "# $))$"#"#* ); $"# '@%)"8 '- $%%'(#)"#* – I) 3'8".7 8")$& "#-'$)"'# &">
•
T')$& 7$&7 8$&( 3"'."%$&&• T')$& 3(%;$77 3"'."%$&&• A'(#) .( -' "#."8".($& %(7)'7• A'(#) .( )' "#."8".($& 7(33&"7• A'(#) 73#) '# 73%"-"% ")7 '- 3#.")( )%
Executive Placement 2003 BIM
S h l f M t St di S i i d E ll
-
8/19/2019 Afl - All Five Units Ppt
29/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTING CYCLEDIFFERENCE BET2EEN 0OURNAL AND LEDGER
• 6OURNAL – I) "7 $ ''> '- '"*"#$& #)
– A&& )$#7$%)"'#7 $ %'.. "# $%;'#'&'*"%$& '.
– I) ;$7 *$) ="*;)$* %$(7 ") "7 $ ''>'- 7'(% '- #)
– U#") '- %&$77"-"%$)"'# '- .$)$ "7 )$#7$%)"'#
–
P'%77 '- %'."#* -"#$#%"$& )$#7$%)"'#7 "7%$&&. $7 6'(#$&"7"#*
– I) "7 $ %'#)"#('(7 3'%77 .$ $-) .$
– E#)"7 $ )$#7-. )' ); &.*
• LEDGER – I) "7 $ 7'(% '- 7%'#.$ #)
– A&& )$#7$%)"'#7 3)$"#"#* )' $ 3$)"%(&$$%%'(#) $33$ $) '# 3&$%
– I) "7 ); $"# 7'(% '- "#-'$)"'#
– U#") '- %&$77"-"%$)"'# '- .$)$ "7 ); $%%'(#)
– P'%77 '- %'."#* )$#7$%)"'#7 "# );&.* "7 %$&&. $7 3'7)"#*
– L.* 3'7)"#* %$# .'# $%%'."#* )'%'#8#"#%
– F' ); &.*, -"7) ); )"$& $&$#% "7.$=# $#. );# -"#$& $%%'(#)7 $ 33$.
Executive Placement 2003 BIM
S h l f M t St di St i i t d E ll
-
8/19/2019 Afl - All Five Units Ppt
30/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTING CYCLE
• DIFFERENCE BET2EEN 0OURNAL AND LEDGER
– 6'(#$& "7 ); ''> '- 3" -"7) #), =;"& L.* "7 ); ''> '- -"#$& #) – J I# '); ='.7, &.* %'#)$"#7 $#$&)"%$& %'.7, =;"& @'(#$& %'#)$"#7 %;'#'&'*"%$& %'.7 – J N$$)"'# "7 4(". "# $ @'(#$& );$) "7 #') ); %$7 "# ); &.* – J T$#7$%)"'#7 $ %'.. "# ); 74(#% '- '%%(#% "# ); @'(#$&, =;$7 )$#7$%)"'#7 $
%&$77"-". $#. %'.. "# &8$#) $%%'(#)7 "# ); &.* –
J D$)$ %$# %&$77"-". $7. '# )$#7$%)"'# "# ); &.*, =;"& ); $7"7 '- %&$77"-"%$)"'# '- .$)$ $$%%'(#)7 "# ); &.* – J A )$#7$%)"'# "7 -"7)& %'.. "# ); @'(#$& 7''# $-) ); '%%(#% '- ") ") "7 '#& );# )$#7-.
)' ); &.* – J F"#$& $%%'(#)7 %$##') ."%)& 33$. -' @'(#$&, () &.*7 -' ); $7"7 -' $7
33$$)"'# '- -"#$& $%%'(#)7 – J A%%($% '- @'(#$& %$##') )7)., () $%%($% '- &.* %$# )7). )' $ %)$"# )#) (7"#*
)"$& $&$#% – J 6'(#$& ;$7 )=' %'&(#7 -' .") $#. %."), =;$7 $ &.* ;$7 )=' 7".7 '- $# $%%'(#) '# -'
.") $#. ); '); -' %.") – J 6'(#$&7 $ #') $&$#%. $) ); #. '- $ 3"'., () $%%'(#)7 "# ); &.* $ $&$#%. $) ); #. '-
$ 73%"-"% 3"'.
Executive Placement 2003 BIM
S h l f M t St di St i i t d E ll
-
8/19/2019 Afl - All Five Units Ppt
31/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTING CYCLE
• TRIAL BALANCE+ – A 7)$)#) %'#)$"#"#* ); $&$#%7 '- $&& &.* $%%'(#)7, $7
$) $# *"8# .$), $$#*. "# ); -' '- .") $#. %.")%'&(#7 3&$%. 7". 7". $#. 33$. ="); ); '@%) '-%;%>"#* ); $");)"%$& $%%($% '- &.* 3'7)"#*7
Executive Placement 2003 BIM
S h l f M t St di St i i t d E ll
-
8/19/2019 Afl - All Five Units Ppt
32/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTING CYCLE• IMPORTANCE OR SIGNIFICANCE OF TRIAL BALNCE+
– S($ '- 8$"'(7 $%%'(#)7 – P''- '- .'(& #) – E#7("#* '- $");)"%$& $%%($% – T"$& $&$#% -$%"&")$)7 33$$)"'# '- -"#$& $%%'(#)7 – T"$& B$&$#% $%)7 $7 ); -"7) 7)3 "# ); 33$$)"'# '- -"#$#%"$& 7)$)#)7 I) "7 $
='>"#* 3$3 );$) $%%'(#)$#)7 (7 $7 $ $7"7 =;"& 33$"#* -"#$#%"$& 7)$)#)7 – T"$& $&$#% #7(7 );$) -' 8 .") #) %'.., $ %'73'#."#* %.") #) ;$7
# %'.. "# ); ''>7 "# $%%'.$#% ="); ); .'(& #) %'#%3) '- $%%'(#)"#* I-); )')$&7 '- ); )"$& $&$#% .' #') $*, ); ."--#%7 $ "#87)"*$). $#.7'&8. -' -"#$#%"$& 7)$)#)7 $ 33$. R%)"-"#* $7"% $%%'(#)"#* '7 %$# $ (%; &#*); )$7> $-) ); -"#$#%"$& 7)$)#)7 ;$8 # 33$. %$(7 '- );%;$#*7 );$) ='(&. 4(". )' %'%) ); -"#$#%"$& 7)$)#)7
–
T"$& $&$#% #7(7 );$) ); $%%'(#) $&$#%7 $ $%%($)& )$%). -' $%%'(#)"#*&.*7 T$"& $&$#% $77"7)7 "# ); ".#)"-"%$)"'# $#. %)"-"%$)"'# '- '7 – I) 3'8".7 $ %'3&) 3"%)( '- $%; $%%'(#) "# ); &.* – I) 7(33&"7 "# '# 3&$% $. -#% '- $&& ); $&$#%7 '- ); &.* $%%'(#)7 – I) ;&37 )' &'%$) ); '7
Executive Placement 2003 BIM
School of Management Studies Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
33/260
Executive Placement 2003 BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
ACCOUNTING CYCLE
• LIMITATIONS OF TRIAL BALANCE+ – T"$& B$&$#% '#& %'#-"7 );$) ); )')$& '- $&& .") $&$#%7
$)%; ); )')$& '- $&& %.") $&$#%7 – T"$& $&$#% )')$&7 $ $* "# 73") '- '7 A# $3&
='(&. $# "#%'%) .") #) "#* '--7) $# 4($&%.") #) – L">="7, $ )"$& $&$#% *"87 #' 3''- );$) %)$"#
)$#7$%)"'#7 ;$8 #') # %'.. $) $&& %$(7 "# 7(%;%$7, '); .") $#. %.") 7".7 '- $ )$#7$%)"'# ='(&. '")). %$(7"#* ); )"$& $&$#% )')$&7 )' 7)"&& $*
– T37 '- $%%'(#)"#* '7 $#. );" --%) '# )"$& $&$#% $' -(&& ."7%(77. "# ); 7%)"'# '# S(73#7 A%%'(#)7
– I- $ 8'(%; "7 %'3&). '")). )' #). "# $ .$ ''>);# ") ="&& #') $--%) ); )')$& '- ); )"$& $&$#%
Executive Placement 2003 BIM
School of Management Studies Striving towards Excellence
http://www.letslearnaccounting.com/voucherhttp://www.letslearnaccounting.com/voucher
-
8/19/2019 Afl - All Five Units Ppt
34/260
BIM School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
Acc!n"in# *+inci*l$ (+) Acc!n"in# cnc*"$
• A%%'(#)"#* 3"#%"3&7 $ ); 7) '- (&7 $#. *(".&"#7 -' );33$$)"'# '- -"#$#%"$& 7)$)#)7 $#. 3')7
• T; $%%'(#)"#* %'#%3)7 $• B(7"#77 #)") %'#%3)• G'"#* %'#%# %'#%3)
• M'# $7(#) %'#%3)• A%%'(#)"#* 3"'. %'#%3)• D($& $73%) %'#%3)• C'7) %'#%3) ! $77)7 "# ;"7)'"%$& %'7)• M$)%;"#* %'#%3) ! 8#( $#. 3#77 $)%;. )' >#'= 3'-")•
R8#( %'*#")"'# %'#%3) 9 I#-&'= $#. '()-&'= 4($&• A%%($& %'#%3) ! 8#( ' 3#77 "#%(. #') %"8. '3$".
• O@%)"8 8".#% %'#%3) ! 8);"#* $7. '# 8".#% !$(.")'
Executive Placement 2003 BIM
School of Management Studies Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
35/260
School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
Acc!n"in# cn'n"in$
• C'#8#)"'# '- -(&& ."7%&'7( – A&& "#-'$)"'# 7;'(&. 8$&.
• C'#8#)"'# '- %'#7"7)#% – R(&7, 3$%)"%7 $#. %'#%3)7 7;'(&. (7.
• C'#8#)"'# '- $)"$&") – O#& 4(". $#. "3')$#) ")7 "# -"#$#%"$& ")7
U#"3')$#) 7;'(&. # &-) '() ' *.
• C'#8#)"'# '- %'#78$)"7 – P&$"#* 7$- T' ;$8 $%%'(#)"#* $&)#$)"8 -' )$#7$%)"'#7
Executive Placement 2003 BIM
School of Management Studies Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
36/260
School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
Di..+nc ,"3n B4 4*in# an& Acc!n"in#
• B''>>3"#* "7 ); 3'%77 '- %'."#*, "#%;'#'&'*"%$& '., ); .$"& )$#7$%)"'#7 '- $ (7"#77#)") I) -'7 3$) '- ); $%%'(#)"#* "#-'$)"'#77)
• O# ); '); ;$#., $%%'(#)"#* "7 $# "#-'$)"'# 77)! "#%&(.7 ); 3'%77 '- %'."#*, %&$77"-"#*,7($"
-
8/19/2019 Afl - All Five Units Ppt
37/260
School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
S5$"$ . ,4 4*in#
• S"#*& #) 77)
• D'(& #) 77)
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
38/260
School of Management Studies – Striving towards Excellence
Vels University www.velsuniv.org
Sin#l n"+5 $5$"
• F' 8 )$#7$%)"'# ); 7;'(&. '# .") $#. '#%.") T;"7 ;$7 )' %'.. "# ); @'(#$&
• E*+ I- R7 2000 ='); '- $= $)"$&7 3(%;$7. );%'3$# , );# R7 2000 ="&& *'"#* '() '- );
%'3$# $#. R7 2000 ='); '- $= $)"$& %'"#* "#)' ); %'3$#
• S"#*& #) 77) "7 $&=$7 $ "#%'3&) .'(& #)
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
39/260
School of Management Studies Striving towards Excellence
Vels University www.velsuniv.org
Sin#l n"+5 $5$"/
• I) .'7 #') %'. ); )=' -'&. --%) '- $%; $#. 8)$#7$%)"'#
• I# );"7 7"#*& #), 7')"7 ); (7"#77 )$#7$%)"'#7$ %'.. "# $# (#77)$)"% $## %'."#* '#&
7"#*& $73%), 7')"7 )=' -'&. $73%) $#. 7')"7'"))"#* ');
• S', ") "7 %$&&. $7 S"#*& #) .'(& #) ' #' #)• T; $%%'(#)7 $"#)$"#. "# ); 7"#*& #) "7 #') &"$&•
W"); );"7 7"#*& #) 77) '- $%%'(#)"#*, 3'-") : &'77$%%'(#) $#. $&$#% 7;) %$# #') 33$.• T;"7 77) "7 -'&&'=. "# 7$&& (7"#77• E*+ S'& 3'3")'7;"3
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
40/260
School of Management Studies Striving towards Excellence
Vels University www.velsuniv.org
D!,l n"+5 $5$"
• I# .'(& #) 77), "# 8 )$#7$%)"'#, ); ="&& '# .") $#. '# %.")
• A# I)$&"$# %;$#) #$. L(%' P$%"'&" "#8#). );.'(& #) 77) '- ''> >3"#* "# 1 AD
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
41/260
School of Management Studies Striving towards Excellence
Vels University www.velsuniv.org
A&'an"a#$ . &!,l n"+5 $5$"
• I) 8$&7 ); .)$"&. "#-'$)"'#• H&37 "# .)"#"#* 3'-") : &'77• G"87 "#-'$)"'# $'() -"#$#%"$& 3'7")"'#• I) "7 $7. '# .($& $73%) %'#%3) " -' 8 .")
'# %.") ="&& ); T; "#-'$)"'# 3'8".. "#); .'(& #) 77) ="&& $%%($)
• I) ;&37 "# 38#)"#* -$(.7 $#. '7• I) 7$)"7-"7 ); )$ $();'")"7• I) ;&37 "# ); 8$&($)"'# '- 7(&)7
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
42/260
School of Management Studies Striving towards Excellence
Vels University www.velsuniv.org
Di..+nc ,"3n $in#l n"+5 an& &!,l n"+5 $5$". ,4 4*in#
• S"#*& #) "7 $# "#%'3&) $#. (#7%"#)"-"% );'. '-''> >3"#* =; $7 .'(& #) "7 $ %'3&) $#.7%"#)"-"% );'. '- ''> >3"#*
• I# 7"#*& #) 77), .") $#. %.") .' #') $*
=; $7 "# .'(& #) 77), .($& $73%) %'#%3) "7(7.
• I# 7"#*& #), '#& 37'#$& $#. %$7; $%%'(#)7 $$"#)$"#. =; $7 "# .'(& #), P7'#$& $%%'(#),
$& $%%'(#) $#. #'"#$& $%%'(#) $ $"#)$"#.• I# 7"#*& #), P'-") $#. &'77 $#. $&$#% 7;) %$##')
33$. =; $7 "# .'(& #) ") %$# 33$.
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
43/260
School of Management Studies Striving towards Excellence
Vels University www.velsuniv.org
D,i" an& C+&i"
• D")+ D – B#-") %"8"#* $73%)
• C.")+ C – B#-") *"8"#* $73%)
– I# L.*, T"$& $&$#% $#. P'-") : L'77 $%%'(#), ); &-);$#. 7". "7 >#'=# $7 .") 7". $#. "*;) 7". >#'= $7 %.")7".
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
44/260
g g
Vels University www.velsuniv.org
• ALL THE FINANCIAL TRANSACTIONS HAVE TWO ASPECTS
•
DOUBLE ENTRY SYSTEM
DEBIT ! BENEFIT RECEIVING ASPECTCREDIT ! BENEFIT GIVING ASPECT
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
45/260
g g
Vels University www.velsuniv.org
NATURE OF ACCOUNT
• PERSONAL ACCOUNT• EG+ RAMU A/C, GANESH A/C, BANK A/C, RS : CO A/C ETC
• REAL ACCOUNT• TANGIBLE ASSETS
– EG+ MACHINE, LAND, STOCK ETC• INTANGIBLE ASSETS
– EG+ GOODWILL, PATENTS ETC
• NOMINAL ACCOUNT• EPENSES
–
EG+ SALARY A/C, RENT A/C• INCOME
– EG+ INTEREST RECEIVED
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
46/260
g g
Vels University www.velsuniv.org
GOLDEN RULE OF ACCOUNTSNATURE OFACCOUNT
DEBIT (DR) CREDIT (CR)
PERSONAL
A/C
THE
RECEIVER
THE GIVER
REAL A/C WHATCOMES IN
WHAT GOESOUT
NOMINALA/C
EXPENSESAND LOSSES
INCOME ANDGAINS
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
47/260
g g
Vels University www.velsuniv.org
FINANCIAL STATEMENTS
• PROFIT AND LOSS ACCOUNT
• BALANCE SHEET
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
48/260
g g
Vels University www.velsuniv.org
PROFIT AND LOSS ACCOUNT
• P'-") : &'77 $%%'(#) "7 33$. )' $7%)$"# ); #) 3'-") ' #) &'77 '- ); %'3$# "# $#$%%'(#)"#* 3"'.
• I) "7 $# $%%'(#) "#)' =;"%; $&& *$"#7 $#. &'777 $ %'&&%). "# '. )' $7%)$"# ); %77 '-*$"#7 '8 ); &'777 ' 8"% 87$
• T; &-) 7". '- ); 3'-") $#. &'77 $%%'(#) "7 ); .") 7". . =; $&& ); '3$)"#* $#.
#'# '3$)"#* 3#77 $ #)"'#.
• T; "*;) 7". '- ); 7)$)#) "7 %$&&. $7 %.") 7". C =; $&& ); '3$)"#* $#. #'#'3$)"#* "#%' $ #)"'#.
• I- "#%' "7 ' );$# ); 3#77, );# %'3$# *)7 N) 3'-")
• I- "#%' "7 &77 );$# ); 3#77, );# ") "7 N) &'77
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
49/260
Vels University www.velsuniv.org
PROFIT AND LOSS ACCOUNT
• I3')$#) 3#77 – C$"$* "#=$.7 ! )$#73') %;$*7 3$". =;"& "#*"#* );
$= $)"$& )' ); %'3$# – C$"$* '()=$.7 ! )$#73') %;$*7 3$". =;"& 7&&"#* );
3'.(%)7 )' %(7)'7 – B$. .)7 ! $'(#) =;"%; "7 *"8# $7 %.") () #') %"8. – D3%"$)"'# – T$, "#)7), ."8".#. 3$". – S$&$, =$*7, #) 3$". –
D"7%'(#), %'"77"'# 3$".
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
50/260
Vels University www.velsuniv.org
PROFIT AND LOSS ACCOUNT
• I3')$#) "#%'+ – S$&7 – I#)7), ."8".#. %"8. – R#) %"8. –
C'"77"'#, ."7%'(#) %"8. )%
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
51/260
Vels University www.velsuniv.org
PROFORMA OF PROFIT AND LOSS ACCOUNT
• EPENSES – P(%;$77 – W$*7 – S$&$, #) – D"7%'(#)
– T$ – I#)7) – P'= – E&%)"%") – C$"$* "#=$.7 – C$"$* '()=$.7
– C&$"#* %;$*7 – P$%>"#* %;$*7 – D'%> .(7 – C'$&, *$7 – F$%)' &"*;)
• INCOME – S$&7 – C'"77"'# %"8. – R#) %"8. – I#)7) %"8.
– D"8".#. %"8. – D"7%'(#) %"8. – O); "#%'
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
52/260
Vels University www.velsuniv.org
PROFORMA OF PROFIT AND LOSS ACCOUNT/
– D"8".#. 3$". – T$. %;$*7 – M$#(-$%)("#* 3#77 – S)$)"'#$ – I#7($#% – R3$" – O--"% 3#77 – S(#. 3#77 – E7)$&"7;#) 3#77 – C'"77"'# 3$". – A.8)"7 3#77 – S&&"#* $#. ."7)"()"'# 3#77
– A(.") 3#77 – D3%"$)"'# – B$. .)7 – T$8&&"#* 3#77
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
53/260
Vels University www.velsuniv.org
BALANCE SHEET
• T; $&$#% 7;) %'3"77 '- &"7) '- $77)7 $#.&"$"&")"7 '- ); %'3$# '# $ *"8# .$)
• I) 37#)7 ); -"#$#%"$& 3'7")"'# '- $ %'#%#
• I) "7 %$&&. $7 7)$)#) '- 4($&")
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
54/260
Vels University www.velsuniv.org
PROFORMA OF BALANCE SHEET
LIABILITIES• CURRENT LIABILITIES• C.")'7• B"&&7 3$$&• O()7)$#."#* 3#77•
T$ 3$$&• D"8".#. 3$$&• B$#> '8.$-)• LONG TERM LIABILITIES
• E6UITY
• E4(") 7;$ %$3")$&• P-#% 7;$ %$3")$&•
R787 : S(3&(7 R)$"#. E$#"#*7• DEBT
• D#)(7• B$#> &'$#
ASSETS• CURRENT ASSETS• C$7; "# ;$#.• C$7; $) $#>• D)'7•
B"&&7 %"8$&• S)'%>• P3$". 3#77• S;') ) "#87)#)7• FI7ED ASSETS
• L$#. : ("&."#*• P&$#) : $%;"#•
F(#")(• L''7 )''&7• M')' %$• L'#* ) "#87)#)• G''.="&&• P$)#)7 : %'3"*;)7
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
55/260
Vels University www.velsuniv.org
CURRENT ASSETS AND FI7ED ASSETS
CURRENT ASSETS• T; $77) =;"%; %$# %'#8). "#)' %$7; =");"# '#
$%%'(#)"#* 3"'.• E• D)' ! %'3$# *"87 %.") )' %(7)'7 C(7)'7
="&& 3$ &$) )' ); %'3$# T"&& );# ); %(7)'7$ #)"'#. $7 D)'7
• B"&& %"8$& ! S$ $7 .)' T; $"# ."--#% "7);$) "&&7 %"8$& "7 %'#7".. $7 3'"77' #')E8# "- %(7)' %;$)7, %'3$# %$# )$> $%)"'#$*$"#7) );
• S)'%> ' I#8#)' ! I) $ R$= $)"$& ' W'> "#3'*77 $#. F"#"7;. *''.7
• P3$". 3#77 ! $'(#) 3$". ); %'3$# "#$.8$#%
• S;') ) "#87)#) ! %'3$# "#87) );" 7(3&(7
%$7; "# 7;') )" -' 3"'. &77 );$# '# $• C$7;• C(#) $77)7 $, );-', 8 "3')$#) )' %$7;
-&'= $#$*#) $#. -'%$7)"#*, %$(7 ); $); $77)7 );$) $ (7"#77 (77 )' 3$ ")7 "&&7, 3$''="#*7, 3$ ."8".#.7 $#. 7' '#,
FI7ED ASSETS• T; $77) =;"%; )$>7 ' );$# '# $ )'
%'#8) "#)' %$7;• E• L$#. : ("&."#*• P&$#) : $%;"#
• F(#")(• L'#* ) "#87)#)• L''7 )''&7• M')' %$• G''.="&&• P$)#)7 $#. %'3"*;)7• F". $77)7 $ #') ;&. -' 7$& () -' );
3'.(%)"'#, 7(33&, #)$& ' $."#"7)$)"8
3(3'77• F". $77)7 $ #'$&& 3%). )' (7. -'' );$# '# $%%'(#)"#* 3"'. =;"%; "7 =;); $ 3$) '- N'# C(#) A77)7 '- ); #)")E%'#'"% #-")7 -' -". $77)7 $ );-'."8. "# ); &'#* )
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
56/260
Vels University www.velsuniv.org
CURRENT LIABILITIES AND LONG TERMLIABILITIES
CURRENT LIABILITIES• T; &"$"&") =;"%; ;$7 )' 3$". ); %'3$#
=");"# '# $%%'(#)"#* 3"'.• E• C.")'7 ! %.") %"8. ); %'3$# -'
); 7(33&"7•
B"&&7 3$$& ! 7""&$ )' %.")'7 () "&&7 3$$&"7 $ 3'"77' #') I- %'3$# .-$(&)7, );#); 7(33&"7 ="&& )$> $%)"'# $*$"#7) ); %'3$#
• O()7)$#."#* 3#77 ! 3#77 #') 3$". );%'3$# *+ O()7)$#."#* #), '()7)$#."#* 7$&$
• T$ 3$$&• D"8".#. 3$$&• B$#> '8.$-) ! %'3$# $ =");.$= '
-' );" %(#) $%%'(#) $'8 ); $8$"&$&
$&$#% $#. )' 3$". =");"# ); $
LON TERM LIABILITIES• T; &"$"&")"7 =;"%; %$# 3$". 8# $-) '#
$ ); %'3$# "7 %$&&. $7 &'#* )&"$"&")"7
• E*• E6UITY•
E4(") 7;$ %$3")$& ! $'(#) %"8. );%'3$# "77("#* 4(") 7;$ F' );"7 %'3$#3$7 4(") ."8".#. )' ); 4(") 7;$;'&.7T; ."8".#. $) "7 #') -".
• P-#% 7;$ %$3")$& ! $'(#) %"8. );%'3$# "77("#* 3-#% 7;$ F' );"7%'3$# 3$7 -". 3-#% ."8".#. )'3-#% 7;$;'&.7
• R787 : S(3&(7 R)$"#. E$#"#*7 ! (#(7.
&$7) $ 3'-")• DEBT• D#)(7 ! $'(#) %"8. ); %'3$#
"77("#* .#)(7 F' );"7 %'3$# 3$7 -"."#)7) )' ); .#)( ;'&.7
• B$#> &'$#
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
57/260
Vels University www.velsuniv.org
FINANCIAL STATEMENT
• F"#$#%"$& 7)$)#)7 - )' -'$& $#. '"*"#$&7)$)#)7 33$. $ (7"#77 %'#%# )' ."7%&'7")7 -"#$#%"$& "#-'$)"'#
• T; )=' $@' -"#$#%"$& 7)$)#)7 $ – P'-") : &'77 $%%'(#) – B$&$#% 7;)
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
58/260
Vels University www.velsuniv.org
USES OF FINANCIAL STATEMENTS
• P'73%)"8 "#87)'7 (7 -"#$#%"$& 7)$)#)7 )' 3-' -"#$#%"$& $#$&7"7, =;"%; "7 $ > %'3'##) "# $>"#* "#87)#) .%"7"'#7
• A &#."#* "#7)")()"'# ="&& $"# ); -"#$#%"$& ;$&); '- $ 37'# ' '*$#""#* %'&&%)"8 $*$"#"#* $*#)7
• Mana#+$ 4(" F"#$#%"$& S)$)#)7 )' $#$* ); $--$"7 '- ); %'3$# $7777"#* ")7 -"#$#%"$& 3-'$#% $#. 3'7")"'# $#. )$>"#*"3')$#) (7"#77 .%"7"'#7
• S8a+8l&+$ (7 F"#$#%"$& S)$)#)7 )' $7777 ); "7> $#. )(# '- );" "#87)#) "# ); %'3$# $#. )$> "#87)#) .%"7"'#7 $7. '# );"$#$&7"7
• C!$"+$ (7 F"#$#%"$& S)$)#)7 )' $7777 =;); $ 7(33&" ;$7 ); 7'(%7 )' #7( ); 7)$. 7(33& '- *''.7 "# ); -()( T;"7 "773%"$&& 8")$& =; $ %(7)' "7 .3#.$#) '# $ 7(33&" -' $ 73%"$&"37 )$%> '-%'#'"% 3'*77 );'(*; $#$&7"7 '- F"#$#%"$& S)$)#)7 '- (7"#777 -' ."--#) 7%)'7 '- ); %'#'
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
https://www.boundless.com/finance/definition/credithttps://www.boundless.com/finance/definition/credithttps://www.boundless.com/finance/definition/credit
-
8/19/2019 Afl - All Five Units Ppt
59/260
Vels University www.velsuniv.org
ESSENTIALS OF GOOD FINANCIAL STATEMENTS
• Si*lici"5: F"#$#%"$& 7)$)#)7 7;'(&. 7"3& 7' );$) %'#%#. "#."8".($&7 %$# $7"& (#.7)$#. $#. "#)3) ); 3'3& F' );"7, );7)$)#)7 (7) 7"3& $#. %&$
• Ri#8" "i: T;7 (7) 33$. $) ); "*;) )" A# .&$ "# );" 37#)$)"'# $ .%$7 );" (7-(77
• C*lianc 3i"8 l#al +9!i+n"$: F"#$#%"$& 7)$)#)7 (7) 33$. "# ); -' $#. 7)& $7 4(". ); A%) T; (7) ;$8 7(@%)9$)) $7 37%". $#. (7) 37#). $7 7)$). "# ); A%)
• A&8+nc . acc!n"in# *+inci*l$: T; -"#$#%"$& 7)$)#)7 (7) $7. '# ); G#$&& A%%3). A%%'(#)"#* P"#%"3&7 GAAP 7' );$) );$ ;$8 (#"87$& $%%3)$#%
•
Di$cl$!+: T; -"#$#%"$& 7)$)#)7 7;'(&. ."7%&'7 $&& ); &8$#) $#. $)"$& -$%)7 I) 7;'(&. )$#73$#) 7' );$) ); (77 '- $%%'(#)"#*"#-'$)"'# %$# .$= #$) %'#%&(7"'#7
• A!"8n"ic: T; "#-'$)"'# %'#)$"#. "# ); -"#$#%"$& 7)$)#)7 7;'(&. $();#)"% 7(33'). 8".#%
• Rl'an" " "8 *!+*$: F"#$#%"$& 7)$)#)7 (7) &8$#) )' );" 3(3'77 I&8$#) $#. (##%77$ "#-'$)"'#7 7;'(&. #') "#%&(.."# );7 7)$)#)7
• C*l" an& acc!+a" in.+a"in$: F"#$#%"$& 7)$)#)7 7;'(&. "#%&(. ); %'3&) $#. $%%($) "#-'$)"'# $'() ); 3'*77 '- $ (7"#77$#. ")7 -()( 3'73%)7 I#-'$)"'#7 7;'(&. $7. '# -$%)7 F$&7 $#. "#%'3&) "#-'$)"'# 7(&)7 "# ='#* "#)3)$)"'#
• C*a+a,ili"5: F"#$#%"$& 7)$)#)7 7;'(&. %'3$$& T; %'3$"7'# %$# $. )=# 37#) $#. 3$7) $7 =&& $7 )=# '# (7"#77
$#. ); '); I) "#%$77 ); ()"&") '- ); 7)$)#)7 T;"7 %$# .'# =;# 7""&$ $%%'(#)"#* 3"#%"3&7 $ $.'3). -' );" 37#)$)"'#
• Facili"a"in# "8 anal5$i$: D%"7"'#7 %$# )$># '#& 3'3 $#$&7"7 '- ); -"#$#%"$& 7)$)#)7 T;(7, -"#$#%"$& 7)$)#)7 7;'(&. 33$."# 7(%; $ =$ );$) ") $ -$%"&")$) ); $#$&7"7 F' );"7, ); 8$"'(7 ")7 7;'(&. %&$77"-". $#. *'(3. "# $ 3'3 $##, 7' );$) .$)$ %$# ')$"#. $7"& -' $#$&7"7
• S5$"a"ic a++an#n": T; "#-'$)"'# %'#)$"#. "# ); -"#$#%"$& 7)$)#)7 7;'(&. $$#*. 77)$)"%$&& 7' );$) ); $ %'3$$&
• A!&i"&: T; -"#$#%"$& 7)$)#)7 7;'(&. ;$8 # 37#). )' ); (77 $-) "#* $(."). ); %'3)#) %;$). $%%'(#)$#)7
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
60/260
Vels University www.velsuniv.org
LIMITATIONS OF FINANCIAL STATEMENTS
• Ba$& n "+a&i"in$ an& cn'n"in$: F"#$#%"$& 7)$)#)7 $ 33$. $#. $7. (3'# )$.")"'#7 $#. %'#8#)"'#7 =;"%; $&&'= ); (7$* '- 37'#$& @(.*#)7
• Ba$& n 8i$"+ical &a"a: F"#$#%"$& 7)$)#)7 $ $7. '# ;"7)'"%$& .$)$ =;"& 3$)"7 $ ' "#)7). "# >#'="#* ); 37#) 3'7")"'# $#. -()( 3'73%)7 '-); (7"#77 #)3"7
• Sc* . ani*!la"in$: F"#$#%"$& 7)$)#)7 $ 7')"7 33$. $%%'."#* )' ); #.7 '- ); 7")($)"'# ' =;"7 '- ); $#$*#) M$#$*#) %$#$#"3(&$) -"#$#%"$& 7)$)#)7 (#.98$&($)"'# ' '898$&($)"'# '- "#8#)', (#. ' '8 %;$*"#* '- .3%"$)"'# )%S')"7 ="#.'= .77"#* "7 7'). )' "# '. )' 7;'= )) -"#$#%"$& 3'7")"'# '- $ %'#%# );$# ")7 $& 3'7")"'# S' -"#$#%"$& 7)$)#)7 $ #') - -' "$7
• In.l!nc& ,5 *+$nal -!n"$: F"#$#%"$& 7)$)#)7 $ "#-&(#%. 37'#$& @(.*#)7 '- ); $%%'(#) O# $# "77(7 ' );$# '# );'.7 $3")). F' $3&, );'. '- .3%"$)"'#, 8$&($)"'# '- 7)'%>, 8$&($)"'# '- *''.="&& )% $&& .3#. (3'# ); 37'#$& @(.*#)7 '- ); 3'&"%9$> '- );#)3"7
• I#n+ 9!ali"a"i' a$*c"$: F"#$#%"$& 7)$)#)7 7;'= '#& );'7 -$%)7 =;"%; %$# 377. "# '# )7 Q($&")$)"8 $73%)7 '- ); (7"#77 (#")7 $ '")).-' ); ''>7, %$(7 ); %$##') 377. "# '# )7 T;(7, %'."$& 3&'93&' &$)"'#7, --"%"#% '- $#$*#), -"7 $"&") )' .8&'3#= 3'.(%)7, %(7)' 7$)"7-$%)"'#, )% ;$8 $ 8")$& '& "# ); 3'-")$"&") '- ); -", () ; "*#'. $#. '")). %$(7 );7 $ 4($&")$)"8 "# #$)(
• I#n+ in.la"ina+5 ..c"$: C;$#*7 "# 3"% &8& $> .$)$ $#"#*&77 F"#$#%"$& 7)$)#)7 %'. )$#7$%)"'#7 $) ;"7)'"%$& %'7)7 N' $%%'(#) "7 )$># '- );37#) 8$&(
• I#n+ "8 in"+$" . "8+ *a+"i$: F"#$#%"$& 7)$)#)7 $ 33$. ="); $ 8"= )' )$> %$ '- ); "#)7) '- 3'3")'7 '#& $#. "*#' ); "#)7)7 '- $&&'); "#)7). 3$)"7 &"> %.")'7, "#87)'7, ='>7, 7)'%> %;$#*7, )$$)"'# $();'")"7, %'#'"7)7, 7$%;7, 3'&")"%"$#7, )%
• Financial $"a"n"$ a+ nl5 in"+i +*+"$: F"#$#%"$& 7)$)#)7 $ 77#)"$&& "#)" 3')7 T; %$##') -"#$& T; $%)($& 3'-") ' &'77 '- $ (7"#77 %$# .)"#. '#& =;# ); (7"#77 "7 (&)"$)& %&'7. T; "7)#% '- %'#)"#*#) $77)7 $#. &"$"&")"7, .-. 8#( 3#77 $> ); 7)$)#) &77$%%($) $#. ' 7(@%)"8
• A+"i.icial 'i3: F"#$#%"$& 7)$)#)7 .' #') 8$& $ $& $#. %'%) 3"%)( '- ); ='); '- $77)7 $#. );" &'77 '- 8$&( T; $7'# "7 );$) ); $ 7;'=# '#;"7)'"%$& %'7) T;(7, );7 7)$)#)7 3'8". $)"-"%"$& 8"= M$>) ' 3&$%#) 8$&( $#. ); --%) '- ); %;$#*7 "# ); 3"% &8& $ %'3&)& "*#'.
• Inca*a,l: F"#$#%"$& 7)$)#)7 $ "#%$3$& '- 7;'="#* 3'-")$"&"), '3$)"'#$& --"%"#%, -"#$#%"$& 7'(#.#77, )% '- ); (7"#77T;7 &"")$)"'#7 '- -"#$#%"$& 7)$)#)7 %$# '8. --"%"#) $#$&7"7 $#. "#)3)$)"'# '- ); -"#$#%"$& 7)$)#)7
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
61/260
Vels University www.velsuniv.org
TECHNI6UES OR TOOLS FOR FINANCIALSTATEMENT ANALYSIS• COMPARATIVE STATEMENT ANALYSIS OR HORIZONTAL ANALYSIS
– C'3$$)"8 -"#$#%"$& 7)$)#) "7 $ $#$&7"7 '- -"#$#%"$& 7)$)#)7 '- ); %'3$# -' )=' $7 ' '-); )=' %'3$#"7 '- 7""&$ )37 H'" %'3$"7'# )=# )=' -"#$#%"$& 7)$)#)7 B"#*$ )%;#"4( '- ;'"
-
8/19/2019 Afl - All Five Units Ppt
62/260
Vels University www.velsuniv.org
TECHNI6UES OR TOOLS FOR FINANCIALSTATEMENT ANALYSIS• TREND ANALYSIS
– T#. $#$&7"7 "7 ); $#$&7"7 '- ); )#. '- ); -"#$#%"$& $)"'7 '- ); %'3$# '8 );$7 I) "7 $# "3')$#) )''& '- ;'"
-
8/19/2019 Afl - All Five Units Ppt
63/260
Vels University www.velsuniv.org
TECHNI6UES OR TOOLS FOR FINANCIALSTATEMENT ANALYSIS• FUND FLOW STATEMENT
– T; '@%)"8 '- );"7 $#$&7"7 "7 )' )$%) ); "#-'$)"'# &$)"#* )' ='>"#* %$3")$& T;$'(#) '- #) ='>"#* %$3")$& "7 .)"#. ..(%)"#* ); )')$& '- %(#) &"$"&")"7-' ); )')$& '- %(#) $77)7 T; 7)$)#) '- %;$#*7 "# ='>"#* %$3")$& 3'8".7 );"#-'$)"'# "# &$)"'# )' ='>"#* %$3")$& )=# )=' -"#$#%"$& 3"'.7
• CASH FLOW STATEMENT
– C$7; -&'= $#$&7"7 "7 ); $#$&7"7 '- ); %;$#* "# ); %$7; 3'7")"'# .("#* $ 3"'.
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
64/260
Vels University www.velsuniv.org
UNIT
• RATIO ANALYSIS – A $)"' "7 $ $);$)"%$& &$)"'#7;"3 )=# )=' ")7 377. "# $
4($#)")$)"8 -' – A# $%%'(#)"#* $)"' %$# .-"#. $7 4($#)")$)"8 &$)"'#7;"3 )=# )=' '
' ")7 '- ); -"#$#%"$& 7)$)#)7 %'##%). ="); $%; '); – I) "7 $ %'3$"7'# '- ); #($)' ="); ); .#'"#$)' – E$3&7+ L"4(".") $)"'7, P'-")$"&") $)"'7, T(#'8 $)"'7, 7'&8#% $)"'7 – A#$&7"7 $#. "#)3)$)"'# '- -"#$#%"$& 7)$)#)7 ="); ); ;&3 '- $)"'7 "7
). $7 $)"' $#$&7"7 – I) "#8'&87 ); 3'%77 '- %'3()"#*, .)"#"#* $#. 37#)"#* );
&$)"'#7;"3 '- ")7 ' *'(37 '- ")7 '- -"#$#%"$& 7)$)#)7 – I) "7 $# $* '&. )%;#"4( '- -"#$#%"$& $#$&7"7 – T; $ ); 7)37 "# $)"' $#$&7"7 $ S&%)"'# '- &8$#) "#-'$)"'#
C'3$"7'# '- %$&%(&$). $)"'7 % I#)3)$)"'# $#. 3')"#*
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
65/260
Vels University www.velsuniv.org
I*+"anc . +a"i anal5$i$
• Ai& " a$!+ #n+al ..icinc5+• R$)"'7 #$& ); $77 '- $%%'(#)"#* .$)$ )' 7($""#* --%)"8 %'#)'& '- ); (7"#77 !$7("#* 3-'$#% %'#)'& '- %'7) )%• E--%)"8 %'#)'& "7 > #') '- --%)"8 $#$*#)•
-
8/19/2019 Afl - All Five Units Ppt
66/260
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
67/260
Vels University www.velsuniv.org
A&'an"a#$ . Ra"i anal5$i$
•
1 Hl*.!l in Dci$in Ma4in#A&& '( -"#$#%"$& 7)$)#)7 $ $. -' 3'8"."#* "#-'$)"'# B() );"7 "#-'$)"'# "7 #') ;&3-(& -' .%"7"'# $>"#* %$(7 -"#$#%"$& 7)$)#)7 3'8". '#& $="#-'$)"'# W;# = %$&%(&$) ."--#) $)"'7 "# $)"' $#$&7"7, $) );$) )", = *) (7-(& "#-'$)"'# I %$# 3&$"# ") ="); 7"3& $3& S(33'7, = %$&%(&$)'( "#)7) %'8$* $)"' =;"%; "7 10)"7 () '( %'3)")' %'3$#7 "#)7) %'8$* $)"' "7 15 )"7 I) $#7 %$3$%") '- ); 3'-") '- '( %'3)")'%'3$# "7 ' );$# (7 B 7"#* );"7, = %$# )$> .%"7"'#7 -' "#%$7"#* '( 3'-")$"&") Hl*.!l in Financial F+ca$"in# an& Plannin#E8 $ = %$&%(&$) &')7 '- $%%'(#)"#* $)"'7 W;# = $> )#. '- $&& );7 $)"'7, = %$# *) (7-(& "#-'$)"'# -' '( -()( -'%$7)"#* $#. 3&$##"#* F'$3&, = %$# )&& -"8 $ %'&&%)"'# 3"'. ="); -'&&'="#* =$F' );"7 )#., = >#'= );$) = $ .%$7"#* ); .$7 -' %'&&%)"'# '# -' '(.)'7 W"); );"7 "#-'$)"'#, = %$# $> )=' 3&$#7 O# "7 --%)"8 (7'- '# =;"%; = $ *))"#* -' '( .)'7 ' -$7)& $#. 7%'#. = %$# $&7' %;%> ); ;$8"' '- '( .)'7 %'3$"#* );"7 ="); 7$&7 )#. L"> );"7,); $ &')7 '- $)"'7 =;"%; $ $&7' (7-(& -' )) 3&$##"#*; Hl*.!l in C!nica"inR$)"' $#$&7"7 $ ' "3')$#) -' %'(#"%$)"'# 3'"#) '- 8"= S(33'7, = ;$8 )'$33'"#) #= 7$&7 $*#)7 -' '( %'3$# A) );$) )", = %$#
%'(#"%$) ); (7"#* '( %'3$#7 7$&7 $#. 3'-") &$). $)"'7 T; "7 #' #. '- ;"9)%; -' (#.7)$#."#* ); $#"#* '- $# 73%"-"% $)"' F'$3&, '( *'77 3'-") "# 2010 "7 2 $#. "# 2011, ") "7 255 B @(7) )&&"#* );"7 $)"', = %$# (#.7)$#. =;); '( %'3$# "7 *'="#* ' -$&&"#*• Hl*$ in Cn"+lR$)"' $#$&7"7 %$# $&7' (7 -' %'#)'&&"#* '( (7"#77 W %$# $7"& %$) ); 7)$#.$. '- $%; -"#$#%"$& ") '- '( $&$#% 7;) $#. 3'-") $#. &'77 $%%'(#) O#);"7 $7"7, = %$# $&7' %$&%(&$) 7)$#.$. $)"'7 B %'3$"#* 7)$#.$. $)"'7 ="); $%)($& $%%'(#)"#* $)"'7, = %$# -"#. 8$"$#% T;7 8$"$#% $ -$8'$&$#. (#-$8'$& O# );"7 $7"7, = %$# %'#)'& '( (7"#77 -' -"#$#%"$& 3'"#) '- 8"=? Hl*.!l .+ S8a+8l&+@$ &ci$in$F' $3&, I $ $ 7;$;'&. I =$#) )' "#87) "# $# %'3$#7 7;$7 B-' ("#* $# %'3$#7 7;$7, I ="&& "#)7). )' >#'= %'3$#7 &'#* )7'&8#% S', I ;$8 )' %$&%(&$) &'#* ) 7'&8#% $)"'7 I# =;"%;, I ;$8 )' %$&%(&$) -". $77)7 )' #) ='); $)"', -". $77)7 )' &'#* ) .) $)"' O# );"7$7"7, I %$# >#'= ); &8& '- -". $77)7 $#. ")7 $"# 7'(% A-) %;%>"#* '#7 7%("), I ="&& "#)7). )' >#'= )(# '# );"7 "#87)#) ROI,EPS $#. DPS $ '7) (7-(& $)"'7 =;"%; I %$# %$&%(&$) -' >#'="#* );"7 Hl*.!l .+ C+&i"+$@ &ci$in$C.")'7 $ );'7 37'#7 =;' 3'8". *''.7 '# %.") )' %'3$# ' 3'8".7 7;') 3"'. &'$# )' %'3$# A&& ); %.")'7 $ "#)7). )' >#'= =;);%'3$# ="&& 3$ );" .) ' #') F' );"7, ); %$&%(&$) %(#) $)"' $#. 4("%> &"4(". $)"' $#. $8$* 3$#) 3"'. O# );"7 $7"7, ); )$> .%"7"'#7 Hl*.!l .+ *l5$@ &ci$in$E8 3&' =$#)7 )' "#%$7 ;"7 7$&$ H $&7' =$#)7 )' *) ' $#. ' "#%#)"87 -' %'3$# F' );"7, ; )$>7 ;&3 -' %'3$#7 3'-")$"&") $)"'7P'-")$"&") $)"'7 ="&& ;&3-(& -' 3&'7 )' 377( '# ); %'3$# -' "#%$7"#* );" 7$&$ Hl*.!l .+ G'" &ci$in$D"--#) %'3$#"7 $#$&
-
8/19/2019 Afl - All Five Units Ppt
68/260
Vels University www.velsuniv.org
CLASSIFICATION OF RATIOS
• Cla$$i.ica"in . +a"i$ ,5 *!+*$ + .!nc"in – T;7 $)"'7 $ (7. -' ); 3(3'7 '- $7777"#* 3'-")$"&"), $%)"8") ' '3$)"#* --"%"#% $#. -"#$#%"$& 3'7")"'# '- $ %'#%# – T;7 $)"'7 $ %&$77"-". $7 3'-")$"&") $)"'7, T(#'8 $)"'7, F"#$#%"$& ' 7'&8#% $)"'7 – P'-")$"&") $)"'7 "#%&(. R)(# '# "#87)#), N) 3'-") $)"', G'77 3'-") $)"', O3$)"#* 3'-") $)"' )% – T(#'8 $)"'7 "#%&(. S)'%> )(#'8, D)' )(#'8, C.")'7 )(#'8, W'>"#* %$3")$& )(#'8 )% – F"#$#%"$& ' 7'&8#% $)"'7 "#%&(. %(#) $)"', &"4(". $)"', P'3")$ $)"', D) 4(") $)"' )%
• Cla$$i.ica"in . +a"i$ ,5 i*+"anc
– T;"7 %&$77"-"%$)"'# "7 "#* $.'3). ); B")"7; I#7)")() '- M$#$*#) T;7 $)"'7 $ %&$77"-". $7 – P"$ $)"'7 ! A&7' >#'=# $7 E3&$#$)' $)"'7 =;"%; "#%&(. R)(# '# %$3")$& 3&'., A77)7 )(#'8, P'-") $)"'7 – S%'#.$ 3-'$#% $)"'7 ! W'>"#* %$3")$& )(#'8, S)'%> )' )(#'8, C(#) $77)7 )' -". $77)7, F". $77)7 )' )')$& $77)7 )% – S%'#.$ %.") $)"'7 "#%&(. C.")' )(#'8, D)' )(#'8, L"4(". $)"', C(#) $)"' )%
– G'=); $)"'7 "#%&(. *'=); $) "# 7$&7, *'=); $) "# #) $77)7• Cla$$i.ica"in . +a"i$ ,5 !$+$
– R$)"'7 $ %&$77"-". '# ); $7"7 '- 3$)"7 =;' (7 ); $)"'7 – R$)"'7 $ %&$77"-". -' $#$*#), %.")'7 $#. 7;$;'&.7 – T; -'&&'="#* $ ); $)"'7 -' $#$*#) 8"< O3$)"#* $)"'7, S)'%> )(#'8 $)"', D)' )(#'8 $)"', F". $77)7 )(#'8 $)"'7,
C.")' )(#'8 $)"', N) 3'-") $)"', G'77 3'-") $)"' )% – R$)"'7 -' C.")'7 $ F". %;$*7 %'8, D) 78"% %'8, L"4(". $)"', C(#) $)"', D) 4(") $)"', C$3")$& *$"#* $)"', S'&8#%
$)"' )% – R$)"'7 -' 7;$;'&.7 $ R)(# '# 7;$;'&.7 -(#., P$'() $)"', D"8".#. "&. $)"', C$3")$& *$"#* $)"' )%
• Cla$$i.ica"in . +a"i$ ,5 $"a"n"$ – T;"7 "7 ); )$.")"'#$& %&$77"-"%$)"'# '- $)"'7
– A%%'(#)"#* "#-'$)"'# "7 ')$"#. '7)& -' 3'-") : &'77 $%%'(#) $#. $&$#% 7;) – B$&$#% 7;) $)"'7 ! L"4(".") $)"', C(#) $)"', A7'&() &"4(".") $)"', P'3")$ $)"', -". $77)7 $)"', D) 4(") $)"' )% – P'-") : &'77 $%%'(#) $)"'7 ! G'77 3'-") $)"', N) 3'-") $)"', O3$)"#* 3'-") $)"', E3#7 $)"' )% – M". ' %'3'7") $)"'7 ! R)(# '# "#87)#), R)(# '# N) =');, S)'%> )(#'8, D)' )(#'8, C.")' )(#'8 )%
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
69/260
Vels University www.velsuniv.org
I*+"an" +a"i$
• 1. Debt-to-Equity Ratio• T; .)9)'94(") $)"', "7 $ 4($#)"-"%$)"'# '- $ -"7 -"#$#%"$& &8$* 7)"$). ."8"."#* ); )')$& &"$"&")"7 7)'%>;'&.7
4(") T;"7 $)"' "#."%$)7 ); 3'3')"'# '- 4(") $#. .) (7. ); %'3$# )' -"#$#% ")7 $77)7• T; -'(&$ (7. )' %'3() );"7 $)"' "7• T"al Lia,ili"i$ % S8a+8l&+$ E9!i"5• 2. Current Ratio• T; %(#) $)"' "7 $ &"4(".") $)"' =;"%; 7)"$)7 ); $"&") '- $ %'3$# )' 3$ $%> 7;')9) '&"*$)"'#7 T;"7 $)"' "7 $&7'
>#'=# $7 %$7; $77) $)"', %$7; $)"', $#. &"4(".") $)"' A ;"*; %(#) $)"' "#."%$)7 ); ;"*; %$3$"&") '- $ %'3$# )' 3$$%> ")7 .)7 T; -'(&$ (7. -' %'3()"#* %(#) $)"' "7+
• C!++n" A$$"$ % C!++n" Lia,ili"i$
• 3. Quick Ratio• T; 4("%> $)"', $&7' -. $7 ); $%". )7) $)"' ' ); 4("%> $77)7 $)"', );"7 $)"' "7 $ *$(* '- ); 7;') ) &"4(".") '- $
-" T; 4("%> $)"' "7 ;&3-(& "# $7("#* $ %'3$#7 7;') ) .)7 ="); ")7 '7) &"4(". $77)7• T; -'(&$ (7. -' %'3()"#* 4("%> $)"' "7+• (C!++n" A$$"$ In'n"+i$)% C!++n" Lia,ili"i$• A ;"*; 4("%> $)"' "#."%$)7 ); )) 3'7")"'# '- $ %'3$#• 4. Return on Equity (ROE)• T; )(# '# 4(") "7 ); $'(#) '- #) "#%' )(#. $7 $ 3%#)$* '- 7;$;'&.7 4(") M''8, ); )(# '# 4(")
7)"$)7 ); 3'-")$"&") '- $ %'3'$)"'# 8$&"#* ); $'(#) '- 3'-") *#$). $ %'3$# ="); ); '# "#87). );7;$;'&.7 A&7', ); )(# '# 4(") $)"' "7 377. $7 $ 3%#)$* $#. "7 %'3(). $7+
• N" Inc%S8a+8l&+@$ E9!i"5• T; )(# '# 4(") $)"' "7 $&7' -. $7 )(# '# #) ='); RONW• 5. Net ro!it "ar#in• T; #) 3'-") $*"# "7 $ #( =;"%; "#."%$)7 ); --"%"#% '- $ %'3$# $) ")7 %'7) %'#)'& A ;"*; #) 3'-") $*"# 7;'=7
' --"%"#% '- ); %'3$# $) %'#8)"#* ")7 8#( "#)' $%)($& 3'-") T;"7 $)"' "7 $ *''. =$ '- $>"#* %'3$"7'#7 )=#%'3$#"7 "# ); 7$ "#.(7), -' 7(%; %'3$#"7 $ '-)# 7(@%) )' 7""&$ (7"#77 %'#.")"'#7
• T; -'(&$ -' %'3()"#* ); N) P'-") M$*"# "7+• N" P+.i" % N" Sal$
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
http://www.readyratios.com/reference/debt/debt_to_equity_ratio.htmlhttp://www.readyratios.com/reference/debt/debt_to_equity_ratio.htmlhttp://www.readyratios.com/reference/debt/debt_to_equity_ratio.html
-
8/19/2019 Afl - All Five Units Ppt
70/260
Vels University www.velsuniv.org
I*+"an" +a"i$
• I#8#)' )(#'8 $)"'+• T;"7 $)"' "7 %$&&. $7 S)'%> 8&'%") $)"' ' S)'%> )(#'8 $)"' I) "7 %$&%(&$). )' $7%)$"# ); --"%"#% '- "#8#)'
$#$*#) I) 7;'=7 ); &$)"'#7;"3 )=# %'7) '- *''.7 7'&. $#. $8$* "#8#)' I) ;&37 )' 8$&($) $#. 8"= "#8#)'3'&"% I#8#)' )(#'8 $)"' C'7) '- *''.7 7'&. / A8$* "#8#)'
• C'7) '- *''.7 7'&. S$&7 ! G'77 3'-")• A8$* "#8#)' O3#"#* 7)'%> C&'7"#* 7)'%> / 2• D)' $#. C.")' )(#'8 $)"'+• D)' )(#'8 "7 $&7' %$&&. $7 R%"8$&7 )(#'8 $)"' ' D)' 8&'%")• I) $7(7 ); #( '- )"7 ); %"8$&7 $ ')$). "# $ $ "# )7 '- 7$&7• I) $&7' "#."%$)7 ); --"%"#% '- %.") %'&&%)"'# $#. --"%"#% '- %.") 3'&"%
• I) ;&37 "# .)"#"#* ); '3$)"'#$& --"%"#% '- $ (7"#77• D)' )(#'8 $)"' C.") S$&7 / D)' B"&&7 %"8$&• C.")' )(#'8 $)"' "7 $&7' >#'=# $7 %.")' 8&'%") A&7' >#'=# $7 A%%'(#)7 3$$& )(#'8 $)"'• I) "#."%$)7 ); #( '- )"7 ); 3$$&7 ')$) "# $ $• C.")' )(#'8 $)"' C.") P(%;$77 / C.")'7 B"&&7 P$$&• G'77 3'-") $)"'• C$3")$& G$"#* $)"'• 10 I#)7) %'8 $)"'
-
8/19/2019 Afl - All Five Units Ppt
71/260
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
72/260
Vels University www.velsuniv.org
6UIC RATIO
• I) "7 ');="7 %$&&. $7 L"4(". $)"' ' A%". )7) $)"'• L"4(". $)"' L"4(". $77)7 / C(#) &"$"&")"7• L"4(". $77)7 - )' $77)7 =;"%; $ 4("%>& %'#8)"& "#)' %$7;• L"4(". $77) C(#) $77)7 ! S)'%> ! P3$". 3#77• !urrent liabilities includes !reditors, ank overdraft, bills payable, )utstanding e"penses etc
• T; ".$& &"4(". $)"' "7 1 + 1• C'3$"7'# '- 4("%> $)"' ="); %(#) $)"' "#."%$)7 ); "#8#)' ;'&. (37
• Si#ni.icanc an& In"+*+"a"in• Q("%> $)"' "7 %'#7".. $ ' &"$& )7) '- 7;')9) 7'&8#% );$# %(#) $)"' %$(7
") 7;'=7 ); $"&") '- ); (7"#77 )' 3$ 7;') ) .)7 "."$)&• I#8#)'"7 $#. 33$". 3#77 $ %&(.. -' %(#) $77)7 -' ); 3(3'7 '-
%'3()"#* 4("%> $)"' %$(7 "#8#)'"7 $ )$> &'#* 3"'. '- )" )' %'#8). "#)'%$7; $#. 33$". 3#77 %$##') (7. )' 3$ %(#) &"$"&")"7
• G#$&&, $ 4("%> $)"' '- 1+1 "7 %'#7".. 7$)"7-$%)' L"> %(#) $)"', );"7 $)"' 7;'(&.
$&7' "#)3). %$-(&& H$8"#* $ 4("%> $)"' '- 1+1 ' ;"*; .'7 #') $# );$) );%'3$# ;$7 $ 7)'#* &"4(".") 3'7")"'# %$(7 $ %'3$# $ ;$8 ;"*; 4("%> $)"' () 7&'=3$"#* .)'7 O# ); '); ;$#., $ %'3$# ="); &'= 4("%> $)"' $ ;$8 -$7) '8"#*"#8#)'"7 T; $#$&7), );-', (7) ;$8 $ ;$. &''> '# ); #$)( '- "#."8".($& $77)7
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
http://www.accountingformanagement.org/current-ratio/http://www.accountingformanagement.org/current-ratio/
-
8/19/2019 Afl - All Five Units Ppt
73/260
Vels University www.velsuniv.org
In'n"+5 "!+n'+ +a"i
• T;"7 $)"' "7 %$&&. $7 S)'%> 8&'%") $)"' ' S)'%> )(#'8 $)"'• I) "7 %$&%(&$). )' $7%)$"# ); --"%"#% '- "#8#)' $#$*#)• I) 7;'=7 ); &$)"'#7;"3 )=# %'7) '- *''.7 7'&. $#. $8$* "#8#)'• I) ;&37 )' 8$&($) $#. 8"= "#8#)' 3'&"%• I#8#)' )(#'8 $)"' C'7) '- *''.7 7'&. / A8$* "#8#)'• C'7) '- *''.7 7'&. S$&7 ! G'77 3'-")• A8$* "#8#)' O3#"#* 7)'%> C&'7"#* 7)'%> / 2• Si#ni.icanc an& In"+*+"a"in:
– I#8#)' )(#'8 $)"' 8$ 7"*#"-"%$#)& $'#* "#.(7)"7 A ;"*; $)"' "#."%$)7 -$7) '8"#* "#8#)'"7$#. $ &'= $)"', '# ); '); ;$#., "#."%$)7 7&'= '8"#* ' '7'&) "#8#)'"7 "# 7)'%> A &'= $)"'$ $&7' ); 7(&) '- $"#)$"#"#* %77"8 "#8#)'"7 #.&77& M$"#)$"#"#* %77"8 "#8#)'"7(##%77$"& "#."%$)7 3'' "#8#)' $#$*#) %$(7 ") "#8'&87 )"."#* (3 -(#.7 );$) %'(&. (7. "# '); (7"#77 '3$)"'#7
– U77 (7) $&7' '78 8$"'(7 -$%)'7 );$) %$# --%) "#8#)' )(#'8 $)"' ITR -' "#)3)"#*' $>"#* $# .%"7"'# F' $3&, %'3$#"7 (7"#* FIFO %'7) -&'= $77(3)"'# $ ;$8 $ ;"*; ITR"# ); .$7 '- "#-&$)"'# %$(7 &$)7) "#8#)' 3(%;$7. $) ;"*; 3"%7 $"# "# ); 7)'%> (#.FIFO O# ); '); ;$#., %'3$#"7 (7"#* LIFO %'7) -&'= $77(3)"'# $ ;$8 %'3$$)"8& &'= ITR
);$# ');7 %$(7 '&.7) "#8#)' 3(%;$7. $) %'3$$)"8& &'= 3"%7 $"# "# ); 7)'%> (#.LIFO
– A#'); -$%)' );$) %'(&. "#-&(#% );"7 $)"' "7 ); (7 '- @(7)9"#9)" "#8#)' );'. C'3$#"7(7"#* @(7) "# )" 77) '- "#8#)' $#$*#) (7($&& ;$8 ;"*; "#8#)' )(#'8 $)"' $7%'3$. )' ');7 "# ); "#.(7)
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
74/260
Vels University www.velsuniv.org
Di..+n"ia" &,"+ "!+n'+ +a"i an& c+&i"+"!+n'+ +a"i• D)' )(#'8 "7 $&7' %$&&. $7 R%"8$&7 )(#'8 $)"' ' D)' 8&'%")• I) $7(7 ); #( '- )"7 ); %"8$&7 $ ')$). "# $ $ "# )7 '- 7$&7• I) $&7' "#."%$)7 ); --"%"#% '- %.") %'&&%)"'# $#. --"%"#% '- %.") 3'&"%• I) ;&37 "# .)"#"#* ); '3$)"'#$& --"%"#% '- $ (7"#77• D)' )(#'8 $)"' C.") S$&7 / D)' B"&&7 %"8$&• C.")' )(#'8 $)"' "7 $&7' >#'=# $7 %.")' 8&'%") A&7' >#'=# $7 A%%'(#)7 3$$& )(#'8 $)"'• I) "#."%$)7 ); #( '- )"7 ); 3$$&7 ')$) "# $ $• C.")' )(#'8 $)"' C.") P(%;$77 / C.")'7 B"&&7 P$$&
• Si#ni.icanc . &,"+ "!+n'+ +a"i• T;"7 $)"' "7 8 ;&3-(& =;# (7. "# %'#@(#%)"'# ="); 7;') ) 7'&8#% $)"'7 ", %(#) $)"' $#. 4("%>
$)"' S;') ) 7'&8#% $)"'7 $7( ); &"4(".") '- ); %'3$# $7 $ =;'& $#. $%%'(#)7 %"8$&)(#'8 $)"' $7(7 ); &"4(".") '- $%%'(#)7 %"8$&7
• T; "7 #' (& '- );( )' "#)3) );"7 $)"' A#$&7)7 %$# %'3$ ); $)"' ="); "#.(7)7 7)$#.$.G#$&&, $ ;"*; $)"' "#."%$)7 );$) ); %"8$&7 $ ' &"4(". $#. $ "#* %'&&%). 3'3)& A &'=$)"' "7 $ 7"*# '- &77 &"4(". %"8$&7 $#. $ .(% ); )( &"4(".") '- ); (7"#77 "# ); 7 '- );$#$&7) 8# "- ); %(#) $#. 4("%> $)"'7 $ 7$)"7-$%)'
• Si#ni.icanc . c+&i"+ "!+n'+ +a"i• A%%'(#)7 3$$& )(#'8 $)"' "#."%$)7 ); %.")=');"#77 '- ); %'3$# A ;"*; $)"' $#7 3'3)
3$#) )' 7(33&"7 -' ); *''.7 3(%;$7. '# %.") $#. $ &'= $)"' $ $ 7"*# '- .&$. 3$#)• A%%'(#)7 3$$& )(#'8 $)"' $&7' .3#.7 '# ); %.") )7 $&&'=. 7(33&"7 C'3$#"7 =;' #@'
&'#* %.") 3"'.7 $&&'=. %.")'7 (7($&& ;$8 &'= $)"' $7 %'3$. )' ');7• A ;"*; $)"' 3'3) 3$#) "7 .7"$& () %'3$# 7;'(&. $&=$7 $8$"& ); %.") -$%"&") $&&'=. );
7(33&"7
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
http://www.accountingformanagement.org/current-ratio/http://www.accountingformanagement.org/current-ratio/http://www.accountingformanagement.org/current-ratio/
-
8/19/2019 Afl - All Five Units Ppt
75/260
Vels University www.velsuniv.org
C!++n" a$$"$
•
A %(#) $77) "7 $# ") '# $# #)")7 $&$#% 7;) );$) "7 "); %$7;, $ %$7; 4("8$&#), ' =;"%; %$# %'#8). "#)' %$7; =");"# '# $E$3&7 '- %(#) $77)7 $+
– Ca$8 in 8an& an& ca$8 a" ,an4 9 T;7 $77)7 $ &")$&& '# "# ); $#>+ %'&., ;$. %$7; – S8+" "+ In'$"n"$ 9 T;7 37#) ); #) 7)3 $'8 %$7; $#. 4("8$&#)7 T; #'$&& %' "#)' 3&$ =;# $
%'3$# ;$7 7' (%; %$7; '# ;$#. );$) ") %$# $--'. )' )" 7' '- ") (3 "# '#.7 &$7)"#* &77 );$# '# $ T;"7 '# %$#)"."$)& &"4(-". =");'() 7' --'), () ") .'7 $# $ ;"*; )(# );$# 3&$"# '&. %$7; C$7; $#. "#87)#)7 *"87;$7 "."$) 8$&(, $#. =;"& ); #') #)"& $7 )' &"4(".$), "# $ 3"#%; ); %$# ."7)"(). )' 7;$;'&.7 =");"#"$& --')
– P+*ai& *n$$ = T; %'3$# ;$7 $&$. 3$". );7 3#77 )' ")7 7(33&"7 T; %$# $ &(3 7( 3$". )' $#$.8)"7"#* $*#%, ' $ %.") -' 7' $. %;$#."7 "77(. $ 7(33&" A&);'(*; );7 3#.")(7 $#) )%;#"%$&&&"4("., 7"#% ); %'3$# .'7 #') $%)($&& ;$8 ); '# "# 4(7)"'# "# ); $#>, ;$8"#* "&&7 $&$. 3$". "7 $ .-"#") 3&(7I) $#7 );$) );'7 "&&7 ='#) ;$8 )' 3$". "# ); -()(, $&&'="#* ' '- ); 8#( -' );$) 3$)"%(&$ 4($) )' -&'= )'); '))' &"# $#. %' &"4(". $77)7
– Acc!n"$ +ci'a,l + Bill$ +ci'a,l 9 N'$&& $8"$). $7 A/R, );7 $ -(#.7 );$) %(7)'7 %(#)& '= )' $%'3$# T;8 %"8. ); %'3$#7 3'.(%)7, () ;$8#) ) 3$". -' );'7 *''.7 ' 78"%7 C'3$#"7 '()"#& (*''.7 $#. 78"%7 -' '); %'3$#"7 '# %.") A&);'(*; A/R "7 $&'7) $&=$7 )(#. "#)' %$7; =");"# $ 7;') $'(#) '-)", 7' %(7)'7 $#) 7' ."&"*#) I# $ %$77, %'3$#"7 ;$8 )' =") '-- $. $%%'(#)7 %"8$& "- );8 7;"33.*''.7 ' 3'8".. 78"%7 )' $ %(7)' (#="&&"#* ' (#$& )' 3$
– In'n"+5 + S"c4 = T;7 $ ); %'3'##)7 $#. -"#"7;. 3'.(%)7 );$) $ %'3$# ;$7 %(#)& 7)'%>3"&. )' 7&& )'%(7)'7 N') $&& %'3$#"7 ;$8 "#8#)'"7, 3$)"%(&$& "- ); $ "#8'&8. "# $.8)"7"#*, %'#7(&)"#*, 78"%7, '"#-'$)"'# "#.(7)"7 F' %'3$#"7 );$) .' 7&& 3;7"%$& *''.7, ;'=8, "#8#)'"7 $ )& "3')$#)
– D,"+$• T;7 ")7 $ )3"%$&& 37#). "# ); $&$#% 7;) "# );" '. '- &"4("."), =;"%; $#7 );$) ); '7) &"4(". ")7 $ 7;'=# -"7) T;
3%."#* $3& 7;'=7 %(#) $77)7 "# );" '. '- &"4(".")• C.")'7 $ "#)7). "# ); 3'3')"'# '- %(#) $77)7 )' %(#) &"$"&")"7, 7"#% ") "#."%$)7 ); 7;')9) &"4(".") '- $# #)") I# 77#%,
;$8"#* 7(7)$#)"$&& ' %(#) $77)7 );$# &"$"&")"7 "#."%$)7 );$) $ (7"#77 7;'(&. $& )' ) ")7 7;')9) '&"*$)"'#7• T; $"# 3'& ="); &"#* (3'# %(#) $77)7 $7 $ $7( '- &"4(".") "7 );$) 7' '- ); $%%'(#)7 =");"# );"7 %&$77"-"%$)"'# $ #') 7' &"4(".
I# 3$)"%(&$, ") $ ."--"%(&) )' $."& %'#8) "#8#)' "#)' %$7; S""&$&, ); $ 7' )& '8.( "#8'"%7 =");"# ); $%%'(#)7%"8$& #(, );'(*; ); 7;'(&. $# '--7))"#* $'(#) "# ); $&&'=$#% -' .'()-(& $%%'(#)7 )' 37#) ); $'(#) );$) "7 #')3%). )' %'&&%). T;(7, ); %'#)#)7 '- %(#) $77)7 7;'(&. %&'7& $"#. )' $7%)$"# ); )( &"4(".") '- $ (7"#77
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
76/260
Vels University www.velsuniv.org
C!++n" lia,ili"i$
• C(#) &"$"&")"7 $ =;$) $ %'3$# %(#)& '=7 )' ")7 7(33&"7 $#. %.")'7 T;7 $ 7;')9) .)7, $&& .( "# &77);$# $ $ P$"#* ); '-- #'$&& 4("7 ); %'3$# )' %'#8) 7' '- ")7 %(#) $77)7 "#)' %$7;
• T; "3')$#) %(#) &"$"&")"7 $ – C.")'7 9 A %.")' $ $ $#>, 7(33&" ' 37'# );$) ;$7 3'8".. %.") )' $ %'3$# I# '); ='.7, $ %'3$#
'=7 '# )' ")7 %.")'7 T; $'(#)7 '=. )' %.")'7 $ 3'). '# ); %'3$#7 $&$#% 7;) $7 &"$"&")"7
I- $ %.")' 4(". ); %'3$# )' 7"*# $ 3'"77' #') -' ); $'(#) '=., ); %'3$# ="&& %'. $#. 3')); $'(#) $7 N')7 P$$& I- $ %.")' "7 $ 8#.' ' 7(33&" );$) .". #') 4(" ); %'3$# )' 7"*# $ 3'"77'#'), ); %'3$# ="&& &">& 3') ); $'(#)7 '=. $7 A%%'(#)7 P$$& O); $3&7 '- %.")'7 "#%&(.%'3$#7 3&'7 =;' $ '=. =$*7 $#. '#(77, *'8##)7 =;' $ '=. )$7, $#. %(7)'7 =;' $.
.3'7")7 ' '); 33$#)7
S' %.")'7 $ >#'=# $7 7%(. %.")'7 %$(7 ); ;$8 $ &"# ' '); &*$& %&$" )' ); %'3$#7 .)'7 $77)7 O); %.")'7 $ '-)# (#7%(. %.")'7 7"#% ); .' #') ;$8 $ &"# ' &*$& "*;) )' 73%"-"% $77)7 '- );%'3$#
– B"&&7 ' A%%'(#)7 3$$& 9 T;"7 "7 ); '# ); %'3$# %(#)& '=7 )' ")7 7(33&"7, 3$)#7, $#. 3&'7 99 );$7"% %'7)7 '- (7"#77 );$) ); %'3$# ;$7#) ) 3$"., -' =;$)8 $7'# O# %'3$#7 $%%'(#)7 3$$& "7 $#');%'3$#7 $%%'(#)7 %"8$&, =;"%; "7 =; '); )7 $ 7""&$& 7)(%)(. A %'3$# ;$7 ); 3'= )' 3(7; $%>); .( .$)7 '# 7' '- ")7 $%%'(#)7 3$$& P$"#* );'7 .)7 &$) );$# 3%). %$# '-)# 3'.(% $ 7;')9)
"#%$7 "# $#"#*7 $#. %(#) $77)7 – B$#> '8.$-) 9 # )#7"'# '- %.") -' $ &#."#* "#7)")()"'# =;# $# $%%'(#) $%;7 $&&'=7 3'3& )'''= $ 7) $'(#) '- '#
– O()7)$#."#* 3#77 9 O()7)$#."#* 3#77 $ );'7 3#77 =;"%; ;$8 # "#%(. $#. %'#7(. .("#* $#$%%'(#)"#* 3"'. $#. $ .( )' 3$"., () $ #') 3$". E$3&7 "#%&(. '()7)$#."#* 7$&$, '()7)$#."#* #), )%O()7)$#."#* 3#77 $ %'.. "# ); ''>7 $) ); #. '- $# $%%'(#)"#* 3"'. )' 7;'= )( #(7 '- $ (7"#77
– P'8"7"'# -' .'()-(& .)7
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
http://www.accountingcoach.com/blog/balance-sheethttp://www.accountingcoach.com/blog/what-is-a-liabilityhttp://www.accountingcoach.com/blog/what-is-an-account-payablehttp://www.accountingcoach.com/blog/debtorhttp://www.accountingcoach.com/blog/debtorhttp://www.accountingcoach.com/blog/what-is-an-account-payablehttp://www.accountingcoach.com/blog/what-is-a-liabilityhttp://www.accountingcoach.com/blog/balance-sheet
-
8/19/2019 Afl - All Five Units Ppt
77/260
Vels University www.velsuniv.org
F!n& .l3 $"a"n"
• T;"7 7)$)#) "7 $7. '# ); ='>"#* %$3")$& %'#%3)'- -(#.7 I) $7(7 ); "#-&'= $#. '()-&'= '- ='>"#*%$3")$& 7(&)"#* -' ."--#) )$#7$%)"'#7
• F(#. -&'= $#7 %;$#* "# ='>"#* %$3")$& F&'= '-
-(#.7 "3&"7 $# %;$#*7 "# ='>"#* %$3")$&• F(#. -&'= 7)$)#) $7(7 $#. 37#)7 "# $#
$#$&)"%$& $## ); 7($"7. 87"'# '- );#('(7 -&'=7 '- -(#.7 -' $ 73%"-". 3"'.
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
78/260
Vels University www.velsuniv.org
I*+"anc . .!n& .l3 $"a"n"
• 1 ") 3'8".7 .)$"&. $#$&7"7 $#. (#.7)$#."#* '- %;$#*7 "# );."7)"()"'# '- -"#$#%"$& 7'(%7 )=# )=' $&$#% 7;) .$)7
• 2") 7;'=7 ;'= ); -(#.7 = ')$"#. $#. (7. .("#* $ 3"'.• ); 7'(%7 -' =;"%; -(#.7 = ')$"#. ' (7-(& "# %'3()$)"'# '-
%'7) '- %$3")$& '- ); (7"#77• $ .)$"&. $#$&7"7 '- 7'(%7 '- -(#.7 "# ); 3$7) $%)7 $7 $ *(". -'
')$"#"#* -(#.7 -' -()( 4("#)7• 5") );'=7 &"*;) '# ); -"#$#%"$& %'#74(#%7 '- (7"#77 '3$)"'#7• ") *"87 "#."%$)"'# '- $# =$>#77 ' 7)#*); "# ); *#$& -"#$#%"$&
3'7")"'# '- $ -"• ") %$# %'3$. ="); ); &8$#) (.*)7 )' $7777 ); (7$* '-
-(#.7 $7 3 3&$#• $$#*#) '- %$3")$& 7)(%)(, -'(&$)"#* &'#* ) -"#$#%"$&
3&$#7 $#. 3'&"%"7, E)% A -$%"&")$). -(#.7 -&'= $#$&7"7
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
79/260
Vels University www.velsuniv.org
Di..+nc ,"3n .!n& .l3 $"a"n" an&,alanc $8"• F!n&$ .l3 $"a"n"• I) 7;'=7 %;$#*7 "# ='>"#* %$3")$& )=# )=' $&$#% 7;) .$)7• I) 7;'=7 '#& );'7 ")7 =;"%; %$(7 %;$#*7 "# ='>"#* %$3")$&• I) $"7 $) 37#)"#* -&'= '- -(#.7 '8 $ 3"'.• I) "7 $ )''& -' -"#$#%"$& $#$&7"7, *#$&& (7-(& )' ); $#$*#)• I) "7 $7. '# ); .$)$ -'"#* 3$) '- ); "#%' 7)$)#) $#. ); $&$#% 7;)• I) "7 33$. $-) ); -"#$#%"$& $%%'(#)7 $ %'3&).
• • Balanc $8"• I) 7;'=7 ); 3'7")"'# '- $77)7 $#. &"$"&")"7 '# $ 73%"-"% .$)• I) 7;'=7 ); $& $#. 37'#$& $%%'(#)7 '- $ (7"#77, -&%). "# ); $77)7 $#. &"$"&")"7• I) $"7 $) .3"%)"#* ); -"#$#%"$& 3'7")"'# '- $ (7"#77• I) "7 ); %(&"#$)"'# '- ); $%%'(#)"#* 3'%77 '- $ 3"'. I) "7 $#) -' *#$& 3(3'7 $#.
(7$* '- 8$"'(7 7)$>;'&.7
• I) "7 $7. '# ); )"$& $&$#% $#. $..")"'#$& "#-'$)"'# &$)"#* )' $ -"• I) "7 33$. $-) ); "#%' 7)$)#) "7 %'3&).
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
80/260
Vels University www.velsuniv.org
A&'an"a#$ . F!n&$ Fl3 S"a"n":
•
F!n&$ .l3 $"a"n" *+$n"$ "8 .ll3in# a&'an"a#$:
• (a) F!n& Gn+a"in# Ca*aci"5:• W"); ); ;&3 '- %$7; -&'=7 -' '3$)"#* $%)"8")"7, $ F(#.7 F&'= S)$)#) ;&37 )' (#.7)$#. ); -(#. *#$)"#* %$3$%") '- );
-" =;"%;, (&)"$)&, 3'8".7 8$&($& "#-'$)"'# )' ); $#$*#) -' )$>"#* -()( %'(77 '- $%)"'#
• (,) C8an#$ in 2+4in# Ca*i"al P$i"in:• A F(#.7 F&'= S)$)#) 37#)7 "); ); "#%$7 "# W'>"#* C$3")$& ' D%$7 "# W'>"#* C$3")$& ="); ); ;&3 '- A S)$)#)
'- E%;$#*7 "# W'>"#* C$3")$&=;"%; ;&37 (7 )' >#'= -' =;"%; 7'(%7 ); $..")"'#$& C$3")$& ;$7 # 3'%(., ' );$33&"%$)"'# '- 7(%; -(#.7
• (c) P+-c"& F!n&$ Fl3 S"a"n":• A -" %$# 33$ ")7 3%). "#-&'=7 $#. '()-&'=7 '- %$7; -' -()( ="); ); ;&3 '- $ P'@%). F(#.7 F&'= S)$)#)
• (&) Hi#8li#8"$ "8 Ca!$$ . C8an#$:• A F(#.7 F&'= 7)$)#) ;"*;&"*;)7 ); 7"*#"-"%$#) %$(77 '- %;$#*7 "# W'>"#* C$3")$& 3'7")"'# )=# )=' $%%'(#)"#* 3"'.7
8$&"#* ); --%) -' ); 7$ '# ); &"4(".") $#. 7'&8#% 3'7")"'# '- $ -"
• () E'al!a"in . C+&i"=2+"8in$$:• C.") G$#)"#* A*#%"7, $-) %$-(& $#$&7"7 '- $ F(#.7 F&'= S)$)#), %$# 8$&($) ); %.")=');"#77 '- $ -"=;"%; ;&37
); )' (#.7)$#. ); &"4(".") 3'7")"'#
• (.) Hi#8li#8" "8 Ca!$$ . "8 Fll3in# Cn"+a&ic"in$:• " A.4($) C$7; R78 () "#7(--"%"#) 3'-")• O,• "" S(--"%"#) 3'-"), "#$.4($) %$7; 787
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
81/260
Vels University www.velsuniv.org
Di$a&'an"a#$ (+) Lii"a"in$ . .!n& .l3$"a"n"• A -(#.7 -&'= 7)$)#) %$##') 37#) $ %'#)"#('(7 %;$#* '- -"#$#%"$& $%)"8")"7 "#%&(."#* );
%;$#*7 '- ='>"#* %$3")$&• S"#% ") "7 $7. '# -"#$#%"$& 7)$)#) " I#%' S)$)#) $#. B$&$#% S;), ") "7 #') $
'"*"#$& 7)$)#)• A 3'@%). F(#.7 F&'= S)$)#) .'7 #') $&=$7 37#) 8 $%%($) 7)"$)7 $'() );
-"#$#%"$& 3'7")"'# 7"#% ") "7 $ ;"7)'"% '#• I) "7 #') $ 7(7)")() '- -"#$#%"$& 7)$)#)7, " I#%' S)$)#) $#. B$&$#% S;) I)
7"3& 7(33&"7 "#-'$)"'# $'() ); %;$#* '- W'>"#* C$3")$& 3'7")"'# =;"%;, $*$"#, .3#.7'# ); .$)$ 37#). ); -"#$#%"$& 7)$)#)7• C$7; F&'= S)$)#), " %;$#*7 "# %$7; 3'7")"'#, "7 ' "3')$#) ' ' "#-'$)"8 );$#
); %;$#*7 "# ='>"#* %$3")$& =;"%; "7 37#). $ F(#.7 F&'= S)$)#)• I) "7 ;"7)'"%$& "# #$)( I) 7;'=7 =;$) ;$33#. "# ); 3$7) S', #%77$"&, ")7 8$&( "7 &"").
-' ); 3'"#) '- 8"= '- -()( '3$)"'#7• I) "7 #');"#* () 7%'#. .$)$ T; "#-'$)"'# "# -"#$#%"$& $%%'(#)7 "7 $$#*. $#.
37#). S', ")7 $%%($% $#. &"$"&") .3#. '# ); $%%'(#)"#* .3$)#)• I) "7 $ 7($"7. 37#)$)"'# '- -"*(7 $#. %$##') 3'8". "#-'$)"'# $'() %;$#*7 '# $
%'#)"#('(7 $7"7• T; --%) '- )$#7$%)"'#7 )=# %(#) $77)7 $#. &"$"&")"7 "7 #') 7;'=# "# ); 7)$)#)• I) $&7' "*#'7 )$#7$%)"'#7 )=# &'#* ) $#. &"$"&")"7• I) "7 #') *#$&& %'#7".. $7 $ 7'3;"7)"%$). )%;#"4( '- -"#$#%"$& $#$&7"7
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
82/260
Vels University www.velsuniv.org
F+a" . .!n& .l3 $"a"n"
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
83/260
Vels University www.velsuniv.org
C$" Vl! P+.i" anal5$i$ ( CVP) anal5$i$
• C'7)9V'&(9P'-") CVP $#$&7"7 "7 $ $#$*"$&$%%'(#)"#* )%;#"4( );$) "7 %'#%#. ="); ); --%)'- 7$&7 8'&( $#. 3'.(%) %'7)7 '# '3$)"#* 3'-") '-$ (7"#77 I) .$&7 ="); ;'= '3$)"#* 3'-") "7
$--%). %;$#*7 "# 8$"$& %'7)7, -". %'7)7,7&&"#* 3"% 3 (#") $#. ); 7$&7 " '- )=' ' '."--#) 3'.(%)7
• CVP $#$&7"7 ;$7 -'&&'="#* $77(3)"'#7+•
A&& %'7) %$# %$)*'"
-
8/19/2019 Afl - All Five Units Ppt
84/260
Vels University www.velsuniv.org
I*+"an" cnc*"$ in c$" 'l! *+.i"anal5$i$• F". %'7)7 ! ") "7 ); )')$& '- $&& );'7 %'7)7 ). $7 P"'. %'7)7 '
T" %'7)7 T; .' #') .3#. '# ); 8'&( '- 3'.(%)"'# $#. 7$&7E*+ O--"% #), M$#$*7 7$&$ )%
• V$"$& %'7)7 ! );7 %'7)7 =;"%; "#%$7 ' .%$7 "# 3'3')"'# )'); '()3() $#. 7$&7 I) "7 $&7' >#'=# $7 P'.(%) %'7)7 ' M$*"#$& %'7)7T; 8$ "# ."%) 3'3')"'# )' ); '()3() T; "#%&(. $&& ."%) %'7)7
• C'#)"()"'# ! ") "7 ); ."--#% )=# 7$&7 $#. $*"#$& %'7)7 I) "7); %'#)"()"'# )'=$.7 -". %'7) $#. 3'-") I) "7 (7. )' -"#. );3'-")$"&") '- 3'.(%)7, 3'%777, .3$)#)7 $#. ."8"7"'#7
• P'-") V'&( $)"' P/V $)"' ! );"7 "7 ); $)"' '- %'#)"()"'# )' 7$&7 I)"7 $# "3')$#) $)"' $#$&7"#* ); &$)"'#7;"3 )=# 7$&7 $#.
%'#)"()"'# H"*; P/V $)"' "#."%$)7 ;"*; 3'-")$"&") $#. &'= 8$&($#7 &'= 3'-")$"&") I) ;&37 )' %'3$ 3'-")$"&") '- 8$"'(73'.(%)7
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
85/260
Vels University www.velsuniv.org
P%V +a"i
• T;"7 "7 ); $)"' '- %'#)"()"'# )' 7$&7 I) "7 $# "3')$#) $)"' $#$&7"#* ); &$)"'#7;"3)=# 7$&7 $#. %'#)"()"'# H"*; P/V $)"' "#."%$)7 ;"*; 3'-")$"&") $#. &'= 8$&( $#7&'= 3'-")$"&") I) ;&37 )' %'3$ 3'-")$"&") '- 8$"'(7 3'.(%)7
• E8 '*$#" 8# $#$&7"7 – I) ;&37 "# .)"#"#* 7$&7, #) 3'-"), 8$"$& %'7)7 )% – I) ;&37 )' $> %'3$$)"8 7)(. "# &"#7 '- 3'.(%)7, "#."8".($& -$%)'7, 7$&7 $$7 , 73$$)
%'3$#"7 – I) ;&37 "# $#$*#) )' 7)"$) 7$&7, 3'-"), $#. 8$"$& %'7)7 '- -()( '3$)"'#7 – I) "7 )#7"8& (7. "# .)"#"#* 3"% 3'&"% $#. '); $#$*"$& 3'&"%"7 =; ); "7 $# >
-$%)' ' &"")"#* -$%)' – O3$)"#* 7(&)7 '- $ -" $ "3'8. %'#7"."#* 8$"'(7 $&)#$)"8 A&)#$)"8 7(&)7 $
%'#)$7). $#. $7777. );'(*; P/V $)"'
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
86/260
Vels University www.velsuniv.org
B+a4 'n *in" (+) B+a4 'n anal5$i$
•
I) .)"#7 $) =;$) &8& %'7) $#. 8#( $ "# 4("&""(• I) -7 )' $ 77) '- .)"#$)"'# '- );$) &8& '- $%)"8") =; )')$& 7$&7 $ @(7) 4($& )' )')$& %'7)7 T;"7 &8& "7 >#'=#
$7 B$> 8# 3'"#) BEP• A&7' >#'=# $7 N' 3'-"), #' &'77 3'"#)• U77+
– T')$& %'7)7, 8$"$& %'7)7 $#. -". %'7)7 %$# .)"#. – B$> 8# 7$&7 (#")7 $#. 8$&( %$# $7%)$"#. – CVP &$)"'#7;"3 %$# $#$&7. );''(*;& =;"%; "7 (7-(& -' ); $#$*#) "# .%"7"'# $>"#* – H&37 "# "#) -" %'3$"7'# – H&37 "# 3'-") -'%$7)"#* $#. 3&$##"#* – P'-")$"&") '- 8$"'(7 &8&7 '- $%)"8"), 3'.(%)7 ."8"7"'#7 $#. .3$)#)7 %$# $#$&7. );'(*; $> 8# $#$&7"7 – H&37 "# %'7) %'#)'& – T')$& 3'-")7 %$# .)"#. $***$)"#* ); %'#)"()"'# '- ."--#) 3'.(%)7 ' ."8"7"'#7 $#. .(%"#* ); -".
%'7) -' ); )')$&• L"")$)"'#7+
– C&$ %&$77"-"%$)"'# '- %'7)7 "#)' -". $#. 8$"$& %'7)7 #') 3'77"& – S&&"#* 3"% $ #') $"# %'#7)$#) "# 3$%)"% – D)$"&. %'7) "#-'$)"'# %$##') >#'=# – S"*#"-"%$#% '- '3#"#* $#. %&'7"#* 7)'%> "7 "*#'. 8$&("#* ); $) $*"#$& %'7)7
– D"--#) 3'.(%) $#. 7$&7 "7 %$##') 7)(."7 7"#% '#& '# 7$&7 " "7 $#$&7. (7($&& – C$3")$& 3&'., $>) $73%)7, "3$%) '- G'8) 3'&"% $ "*#'. – I) $77(7 %'#7)$#) (7"#77 %'#.")"'#7 =;"%; "7 #') 3$%)"%$&
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
87/260
Vels University www.velsuniv.org
F+!la
• 1 S$&79M$*"#$& %'7) C'#)"()"'#• 2 C'#)"()"'# F". %'7)7 P'-")• F". %'7) C'#)"()"'# ! P'-")• P/V R$)"' C'#)"()"'# 100
• S$&7• 5 P/V R$)"' C;$#* "# P'-") 100• C;$#* "# S$&7• B$> 8# 3'"#) "# (#")7 F". %'7)7
• C'#)"()"'# 3 (#")• B$> 8# 3'"#) "# R7 F". %'7)7• P/V $)"'
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
88/260
Vels University www.velsuniv.org
• C'#)"()"'# 3 (#") S&&"#* 3"% 3 (#") ! V$"$& %'7) 3 (#")
• S$&7 4(". F". %'7)7 R4(". P'-")7• • P/V R$)"'
• C'#)"()"'# S$&7 P/V $)"'
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
89/260
Vels University www.velsuniv.org
Ma+#inal c$"in#
•
D.ini"in: – T; $7%)$"##) '- $*"#$& %'7)7 $#. '- ); --%) '# 3'-") '- %;$#*7 "# 8'&( ' )3 '- '()3() ."--#)"$)"#*
)=# -". %'7)7 $#. 8$"$& %'7)7• A&'an"a#$ . Ma+#inal c$"in#• A!"a"in in'$"n"$: M$*"#$& %'7)"#* "7 (7-(& )' .)"# ;'= (%; $ -" 7)$#.7 )' *$"# ' &'7 $()'$)"#* 7'
-(#%)"'# T; > %'7)7 )' )$> "#)' %'#7".$)"'# $ ); "#%#)$& &$' %'7) '- $# 3&'7 =;' ="&& )"#$). 87(7 );#= %'7)7 "#%(. -' 4("3#) 3(%;$7 $#. 7(74(#) $"#)#$#%
• C$" +*+"in#: M$*"#$& %'7)"#* "7 8 (7-(& -' %'#)'&&"#* 8$"$& %'7)7, %$(7 '( %$# %$) $ 8$"$#% $#$&7"7 3') );$)%'3$7 ); $%)($& 8$"$& %'7) )' =;$) ); 8$"$& %'7) 3 (#") 7;'(&. ;$8 #
• C!$"+ *+.i"a,ili"5: M$*"#$& %'7)"#* %$# ;&3 .)"# =;"%; %(7)'7 $ ='); >3"#* $#. =;"%; $ ='); &""#$)"#*•
In"+nal in'n"+5 +*+"in#+ S"#% $ -" (7) "#%&(. "#."%) %'7)7 "# ")7 "#8#)' "# )#$& 3')7, $#. );7 %$# )$> $ &'#*)" )' %'3&), $*"#$& %'7)"#* "7 (7-(& -' "#)#$& "#8#)' 3')"#*• P+.i"='l! +la"in$8i*: M$*"#$& %'7)"#* "7 (7-(& -' 3&'))"#* %;$#*7 "# 3'-") &8&7 $7 7$&7 8'&(7 %;$#* I) "7 &$)"8&
7"3& )' %$) $ $*"#$& %'7)"#* )$& );$) 3'"#)7 '() ); 8'&( &8&7 $) =;"%; $..")"'#$& $*"#$& %'7)7 ="&& "#%(., 7' );$)$#$*#) %$# 7)"$) ); $'(#) '- 3'-") $) ."--#) &8&7 '- %'3'$) $%)"8")
• O!"$!+cin#: M$*"#$& %'7)"#* "7 (7-(& -' .%"."#* =;); )' $#(-$%)( $# ") "#9;'(7 ' $"#)$"# $ %$3$"&") "#9;'(7, '=;); )' '()7'(% ")
• C$" cn"+l: M$*"#$& %'7)"#* $>7 ") $7" )' .)"# $#. %'#)'& %'7)7 '- 3'.(%)"'# B $8'"."#* ); $")$ $&&'%$)"'# '--". '8;$. %'7)7, $#$*#) %$# %'#%#)$) '# $%;"8"#* $#. $"#)$"#"#* $ (#"-' $#. %'#7"7)#) $*"#$& %'7)
• Si*lici"5: M$*"#$& %'7)"#* "7 7"3& )' (#.7)$#. $#. '3$) $#. ") %$# %'"#. ="); '); -'7 '- %'7)"#* * (.*)$%'7)"#* $#. 7)$#.$. %'7)"#* =");'() (%; ."--"%(&)
• Eliina"in . c$" 'a+ianc *+ !ni": S"#% -". '8;$.7 $ #') %;$*. )' ); %'7) '- 3'.(%)"'# "# $*"#$& %'7)"#*, (#")7 ;$8$ 7)$#.$. %'7)
• S8+"="+ *+.i" *lannin#: M$*"#$& %'7)"#* %$# ;&3 "# 7;')9) 3'-") 3&$##"#* $#. "7 $7"& .'#7)$). ="); $>98# %;$)7$#. 3'-") *$3;7 C'3$$)"8 3'-")$"&") %$# $7"& $7777. $#. '(*;) )' ); #')"% '- ); $#$*#) -' .%"7"'#9$>"#*
• Acc!+a" '+8a& +c'+5 +a": T;"7 );'. '- %'7)"#* &""#$)7 &$* $&$#%7 &-) "# '8;$. %'#)'& $%%'(#)7, =;"%; $>7 ")$7" )' $7%)$"# $# $%%($) '8;$. %'8 $)
• Mai! +"!+n " "8 ,!$in$$: W"); $*"#$& %'7)"#*, ); --%)7 '- $&)#$)"8 7$&7 ' 3'.(%)"'# 3'&"%"7 $ ' $."&$33%"$). $#. $7777., #7("#* );$) ); .%"7"'#7 )$># ="&& "&. ); $"( )(# )' ); (7"#77
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
90/260
Vels University www.velsuniv.org
• D"7$.8$#)$*7 '- $*"#$& %'7)"#*+ – Cla$$i.5in# c$"$: I) "7 8 ."- -"%(&) )' 73$$) $&& %'7)7 "#)' -". $#. 8$"$& %'7)7 %&$&, 7"#% $&&
%'7)7 $ 8$"$& "# ); &'#* (# H#% 7(%; %&$77"-"%$)"'# 7')"7 $ *"8 "7&$."#* 7(&)7F();', "# $ -" ="); $# ."--#) >"#.7 '- 3'.(%)7, $*"#$& %'7)"#* %$# 3'8 &77 (7-(&
– Acc!+a"l5 +*+$n"in# *+.i"$: S"#% ); %&'7"#* 7)'%> %'#7"7)7 '#& '- 8$"$& %'7)7 $#. "*#'7 -".%'7)7 =;"%; %'(&. %'#7".$&, );"7 *"87 $ ."7)'). 3"%)( '- 3'-")7 )' 7;$;'&.7
– Si='a+ia,l c$"$: S"98$"$& %'7)7 $ "); %&(.. ' "#%'%)& $#$&
-
8/19/2019 Afl - All Five Units Ppt
91/260
Vels University www.velsuniv.org
A**lica"in . a+#inal c$"in#
• 1 K -$%)' ' &"")"#* -$%)'• 2 M$> ' ( .%"7"'#7• F"$)"'# '- 7&&"#* 3"%7• E3') .%"7"'#
• 5 S$&7 " .%"7"'#• P'.(%) &""#$)"'# .%"7"'#• P&$#) * .%"7"'#• P&$#) 3(%;$7 .%"7"'#
• F(); 3'%77"#* .%"7"'#• 10 S;() .'=# .%"7"'#
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
-
8/19/2019 Afl - All Five Units Ppt
92/260
Vels University www.velsuniv.org
DIFFERENT TYPES OF COMPANIES
• SOLE PROPRIETORSHIP• PARTNERSHIP COMPANY• PRIVATE LIMITED COMPANY• PUBLIC LIMITED COMPANY
Executive Placement 2003 BIM
School of Management Studies – Striving towards Excellence
BALANCE SHEET
-
8/19/2019 Afl - All Five Units Ppt
93/260
Vels University www.velsuniv.org
LIABILITIES• CURRENT LIABILITIES• C.")'7• B"&&7 3$$&• O()7)$#."#* 3#77• T$ 3$$&• D"8".#. 3$$&• B$#> '8.$-)• LONG TERM LIABILITIES• E6UITY• E4(") 7;$ %$3")$&• P-#% 7;$ %$3")$&• R787 : S(3&(7 R)$"#. E$#"#*7• DEBT• D#)(7• B$#> &'$#
ASSETS• CURRENT ASSETS• C$7; "# ;$#.• C$7; $) $#>• D)'7• B"&&7 %"8$&• S)'%>• P3$". 3#77• S;') ) "#87)#)7• FI7ED ASSETS• L$#. : ("&."#*• P&$#) : $%;"#• F(#")(• L''7 )''&7• M')' %$• L'#* ) "#87)#)• G''.="&&• P$)#)7 : %'3"*;)7
Ex
top related