Master of Business Administration- MBA Semester 1
MB0041 – Financial and Management Accounting
Accounting is one of the oldest, structured management information system. Give the meaning of accounting and book keeping? Explain the objectives of accounting? Accounting
Accounting is an information science used to collect, classify, and manipulate financial data for organizations and individuals. According to the definition given by American Institute of Certified Public Accountants (AICPA), accounting can be defined as, “Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money transactions and events which are, in part at least of a financial character, and interpreting the results there of.” Accounting is instrumental within organizations as a means of determining financial stability. Without accounting, organizations would have no basis or foundation upon which daily and long-term decisions could be made. The budgets for marketing activities, profit reinvestment, research and development, and company growth all stem from the work of accountants Book-keeping
Bookkeeping involves the recording, storing and retrieving of financial transactions for a company, nonprofit organization, individual, etc. Common financial transactions and tasks that are involved in bookkeeping include: Billing for goods sold or services provided to clients.
Recording receipts from customers.
Verifying and recording invoices from suppliers.
Processing employees’ pay and the related governmental reports. Monitoring individual accounts receivable.
Recording depreciation and other adjusting entries.
Objectives of accounting
Any business firm needs a permanent record of the transactions that it indulges in. These records could be vital for internal purpose, for taxation purpose or for any other purpose. Whenever the organization commits any resource of monetary value either within the firm or outside the firm, a record is made. This permanent record is held on for years and can be retrieved as and when need be. Measurement of Outcome
A business firm may indulge in numerous transactions every day. It may make profit in some of these transactions while it may make losses in some other transactions. However, the effect of all these transactions needs to be aggregated over a period of time. There must be daily, weekly and monthly reports which provides information to the organization about how well it is performing its activities. Accounting serves this purpose by providing periodic financial statements which help the firm adjust their operations accordingly. Creditworthiness
Firms need resources for their functioning. They do not have any capital stock at hand and need to obtain them from investors. Investors will give money to the firm only if they have reasonable assurance that the firm will be able to generate enough profit. Past accounting records help a great deal in proving this. All kinds of investors from banks to shareholders ask for past accounting details before they trust the management with their money. Efficient Use of Resources
Firms can also conduct useful internal analysis with the help of accounting data. Accounting records tell the firm what resources were committed to what activity and what time. These records also summarize the return that was obtained from these activities. Management can then analyze how they could have performed better and used resources more efficiently. Projections
Accounting helps management and investors look forward. Costs and revenue growths can be projected after substantial data has been accumulated. The assumption made is that the company is likely to behave exactly as it has done in the past. Thus, analysts can make reasonable assumptions about the future based on the past record.
Explain GAAP and write down the relationship between accounting principles, accounting...
...the next step is to post the journal entries into account. Ledger Account also known as “T” Account and Account. Ledger accounts categorize these changes or debits and credits into specific accounts, so management can have useful information for budgeting and performance purposes. (http://myaccountingcourse.com/accounting-cycle/t-accounts). Beside there have 3 types of ledgers there is general ledger, sales ledger and purchases ledger. General ledger is the account that generalize all the business transactions. Sales ledger contain all the individual trace receivables accounts while purchases ledger contain all individual trade payable accounts. Example of accounts is payable purchases account, sales accounts, receivable, cash account, bank account, vehicle account etc. As accounting equation, all the debit account put in the debit side and the liability and equity are put in the credit sides.(from lecture note)
The trial balances is the statement of ledger account balances within a ledger. At the end of the accounting period, the total of the debit balances appearing in the trial balance must equal to the sum of all credit balances.( http://accounting-simplified.com/trial-balance.html)
...practice in business.
This may be on account of a number of reasons like defects in goods, quality not matching the requirement for which the buyer purchased it, the buyer not needing the stock, etc.
This happens both in case of goods purchased as well as goods sold by the organisation.
Where the goods sold are being returned we call it "Sales Returns" and where goods purchased are being returned we call it "Purchase Returns"
The transactions of return of goods are also accounting transactions and have to be recorded in the books of accounts just like any other accounting transaction.
Considering a transaction of credit purchases, the two elements effected would be the Purchases a/c and the Vendor a/c. Purchase of stock, being an expenditure, the Purchases a/c is debited and the Vendor being the benefit giver the Vendor a/c is credited.
Therefore in recording a transaction of Purchase Returns, the Vendor a/c is debited and the Purchases a/c is credited.
o Sales Returns
Considering a transaction of credit sales, the two elements effected would be the Sales a/c and the Buyer a/c. Sale of stock, being an income, the Sales a/c is credited and the Buyer being the benefit receiver the Buyer a/c is debited.
Therefore in recording a transaction of Sales Return, the Buyer a/c is credited and the Sales a/c is debited.
3 GOLDEN RULES OF ACCOUNTANCY
(1) Debit What comes in & credit what goes out [Real...
...assets are intended for consumption of sale realised during a year
Current assets is used for trading or transactions
Current assest have direct results of the profit gained in the business such as bank balance
Non-current assets are used for a longer duration (12 months)
Non-current assets used for productive investment purposes
Has very low impact of the profit gained as it only deals with things like machinery
6. the accumulated profit is also known as the retained earnings, retained profit and unappropriated profit. what is the accumulated profit and why do accountants and bookkeepers use different names for the same thing? (6 marks)
Accumulated profits is profits that are not paid as dividend but is transfered over to the accounts for the next year. Also can be used to reinvest in the core of the business to help pay off debts or to purchase a capital asset.
The reasons why accountants and bookkeepers use different names for the same thing is because bookkeepers are the people who record the financial transactions in a business in the form, of journals otherwise known as books, these transactions include receipts, slaes and payments made by the organisation. Bookkeepers are not certified accountants so they will use the term retained profits as this can easily mean profits you have retained over a period of time whereas an accountant is someone who keeps, audit and financial records of a individual or a business and prepares financial and...
Introduction to Financial Accounting (ACC106)
Mega Lawa Trading is a sole proprietorship business owned by Milah Mela. Transactions below are the business activities for the month of December 2013.
Effects of Transaction
Principles of Double Entry
Started a business with a cash at bank for RM 15,000 and cash in hand for RM 10,000
Purchased machinery on credit from Happy Machine Supplies amounted to RM 90,000
Bought inventories amounted to RM 2,000 on cash from Bedah Sdn Bhd
The owner contributed another additional RM 10,500 cash at bank
Owner took goods worth RM 1,000 for personal use
Bought goods by cash at bank from Hamidah for RM 1,500
The business purchased goods from Senang Enterprise on credit amounting RM 14,700
Withdrew cash RM 100 and goods for RM 600
Purchased goods on credit from Mr. Badrul RM 5,000 and Mr. Jalil RM 3,000
Sold goods to Namikah amounting RM 7,000 by cheque
Sold goods to Mizah of RM 10,000 on credit and Mizah only paid RM 5,000 by cash in hand
Business paid RM 600 of advertising expenses using cash
Insurance expenses amounted to RM 1,600 paid by the business using cheque and paid staff salaries amounted to RM 3,000 by cash
Purchase of stock is made by cheque RM 5,000 before receiving trade discount of 3%
The owner’s daughter took goods from the business...
Pre – Master Course (Business Studies)
Unit number and title
Unit – 1 – 4, Principles of Management, Marketing Principles, Human Resources Management
Daw Mu Mu Theint
Analytical Report on Business Organisation (Assignment 1 of 1)
The purpose of this assignment is to:
Be able to use management functions
Be able to use the concepts of segmentation, targeting and positioning and marketing mix
Be able to use various Human Resource Functions
Be able to use various written communication methods and strategies for successful speaking
Choose one company you are familiar with.
You are a director of Diamond Stars Group of companies which operating in various industries in Myanmar. The board of Directors, recently, have made acquisition on one medium sized company in Myanmar. Although that business had successes in the past, the reputation of the company drops slowly because of internal weaknesses. At the same time, competition among businesses is increased continuously and it is needed to prepare the company’s whole operations from every point of views. Your Chairman have now appointed you to be CEO of that company and assigned you and your selected team to analyze the needs of the organization and report back to him with both a proper report and presentation. Some...
ERP 405 (D) Assignments
Q.1 Write Short Notes on the following:
1) Evolution of ERP_MRP and MRP II
Enterprise Resource Planning (ERP) connects - networks internal and external management information across an entire organization, organizing different functions like finance/accounting, manufacturing, marketing, sales and service, etc. ERP systems automate this activity with an integrated software System that integrates different nooks & corners of the Organization it exists. Its purpose is to facilitate the flow of information amongst all the business departments / functions wihin the boundaries of the organization and manage the integration with the internal & external stakeholders in the organization. The first step of ERP is to create a database warehouse that is very much relevant to the company / institution. ERP systems can run only provided with a variety of hardware and network configurations, typically employing a database to store data.
The timeline of the Development of Enterprise resource Planning –
1960s – Inventory Control Packages
1970s – Materials Requirements Planning (MRP)
1980s – Manufacturing Resources Planning (MRP – II)
1990s – Enterprise Resource Planning
2000 – Extended Enterprise Resource Planning
2) Process of ERP implementation
3) Internet banking
Q.2 What are problems of systems islands?
Q. 3 Which are early ERP...
DBA 1601-Management Concept:
I. Describe different levels of management and discuss the evaluation of management thought?
II. What do you mean by Decision making state different types of decision used in organization?
III. Describe the steps in Rational Decision Making with suitable examples.
DBA 1602-Statistics for Management:
1. Find the correlation coefficient to the given Data:
x |63 |54 |68 |75 |92 |55 | |Y |42 |72 |66 |48 |101 |46 | |
2. Find the Rank correlation coefficient to the given Data:
X |55 |42 |85 |101 |44 |46 |63 | |Y |82 |95 |95 |101 |63 |80 |85 | |
3. In a bolt factory machines A1,A2,A3 manufacture respectively 25%,35%,40% of the total output of these 5,4,2 percent are defective bolts. A bolt is drawn at random from the product and is found to be defective. What is the probability that it was manufactured by machine A2?
DBA 1603-Economics Foundation of Business Environment:
1. What is national income & how to measure it?
2. What is Inflation & Deflation?
3. What are the phases of Business Cycle?
4. What are the Characters of Money Market?
5. What is a role of commercial bank in creation of money supply?
1. What is comparative advantage?
2. Difference b/w domestic trade and international Trade?
3. What are the components of balance of payments?(3 Components)...
...=15 Marks ASSIGNMENT – I 1. Write a comparative note on ‘Accounting Standards’ and ‘Accounting conventions’ and ‘Accounting Concepts’. 2. Explain cash flow and funds flow analysis with suitable example from an existing corporate entity for at least three years i.e., 2008, 2009, 2010. 3. Explain the role of ICAI in preparation of various Accounting Standards. List out various standards pronounced by ICAI, New Delhi. 4. Prepare format of ‘Profit and Loss account’ and ‘Balance Sheet’ as per recent guidelines of companies act. 5. Define ‘Marginal Costing’ and distinguish between ‘Marginal costing’ and ‘Absorption costing.’ 5 X 3 =15 Marks ASSIGNMENT – I 6. A proforma cost sheet of a company provides the following particulars : Elements of Cost Material 40% Direct Labour 20% Overheads 20% The following further particulars are available: (a). It is proposed to maintain a level of activity of 2,00,000 units. (b).Selling price is Rs.12 per unit (c) Raw materials are expected to remain in stores for an average period of one month MBA GEN – Second Year – 2011‐12 Batch 1
(d) Materials will be in process, on averages half a month. (e) Finished goods are required to be in stock for an average period of one month. (f) Credit allowed to debtors is two months. (g) Credit allowed by suppliers is one month. You may assume that sales and production follow a consistent pattern. You are required to prepare a statement of working...