About the Course

The Financial Accounting for MBAs course aims to equip MBA students and graduates with a good grasp of Accounting, starting with the basics and going right up to the preparation and "first level" analysis of the Profit & Loss Account, Balance Sheet and Cash Flow statement.

MBA students are future Business Managers. It is thus necessary for them to grasp the essential nuances of Accounting numbers and statements.

After all, as future Business Managers, MBA students need to be comfortable reading and interpreting Financial Statements. They need to understand concepts like revenues, costs, budgets etc, no matter what their specialization is in. The "Financial Accounting for MBAs" course has been designed keeping in mind the heterogeneous background of the MBA students and is aimed at creating conceptual clarity and building strong fundamentals in Financial Accounting, with an objective of developing in them a good commercial sense.

Besides covering the Accounting Fundamentals, the course also covers :

  1. Financial Statement Preparation.
  2. Analysis of Financial Statements.
Based on our own experience in the industry, the ‘industry value’ of MBA students would increase manifold, with this training. A certificate will be awarded at the end of the course.

Course Content

  • Introduction to the Accounting Sytem
  • Forms of Business Organisations
  • Basic Accounting Concepts
  • Introduction to the Accounting Equation
  • Components of the Accounting Equation
  • How the Balance sheet represents the Accounting Equation
  • Equity Component of the Accounting Equation
  • Debit/Credit Rules
  • Introduction to Grouping
  • Grouping in the Balance Sheet
  • Grouping in P&L Statement
  • Introduction to Journal Entries
  • More Journal Entries & Accrual Concept
  • Journal Entry to Ledger
  • Ledger to Trial Balance to Financial Statements
  • Matching Concept, Adjustment Entries
  • Adjustments - Depreciation, Provisions, Unearned & Unbilled Revenues
  • Closing Process, Accounting Conventions
  • Revenues, Expenses & Inventory for a Merchandising Entity
  • P&L Account of a Merchandising Entity
  • Direct vs Indirect Costs
  • Cost of Goods Sold
  • Accounting for Closing Inventory (Raw Materials, WIP & Finished goods)
  • Capital Vs Revenue Expenditure
  • Fixed Vs Variable Cost
  • Profitability Ratios (GP,NP,EBITDA,ROCE, EPS,ROE)
  • Stock Market Strength Ratio - Price Earnings Ratio
  • Working Capital Cycle
  • Liquidity & Solvency Ratios, Stock Market Strength Ratio (Current Ratio, Quick Ratio, Debt Equity Ratio, Interest Coverage Ratio)
  • Management Efficiency/Activity Ratios & Capitalisation Ratios (Receivables Turnover, Receivables Collection Period, Payables Turnover, Payables Payment Period, Inventory Turnover, Inventory Holding Period)
  • Need and Purpose of a Cashflow statement
  • Preparation of a Cashflow statement
  • Interpretation of Cash flow statements
  • Introduction to the Purchase Process
  • Ordering / Receiving
  • Vendor Payments
  • Purchase Returns
  • Receipt of Customer Orders
  • Order Execution, Invoicing & Collection
  • Sales Returns
  • Control Concerns
  • Kingfisher Airlines
  • Satyam Computers
  • WorldCom (MCI)
  • Balaji Telefilms & Cine Vista