Module - 7 Introduction to Company Accounts and Financial Statement Analysis
1. Forms of Business Organization
• Sole Proprietorship & its Types
• Hindu Undivided Family (HUF) Business
• Partnership & its Types
• Goodwill & its Importance
2. Company
• What is a Company
• Characteristics of a Company
• Types of Companies (Public Company & Private Company)
3. Shares
• Meaning of Shares
• Types of Shares (Equity Shares & Preference Shares)
4. Issue of Shares
• Methods of Issuing Shares
• Calls in Arrears
5. Debentures
• Issue of Debentures
• Redemption of Debentures
1. Meaning of Financial Statement Analysis
→ Explanation with Importance
2. Purpose of Financial Statement Analysis
→ Objectives & Benefits
3. Users of Financial Statement Analysis
→ Internal Users (Management, Employees)
→ External Users (Investors, Creditors, Government, Public etc.)
4. Financial Statements Ratios
• Income Statement (Profit & Loss A/c)
• Balance Sheet
5. Financial Statement Analysis & Tools
• Comparative Statements
• Common Size Statements
• Trend Analysis
• Ratio Analysis
• Cash Flow Statement
• Fund Flow Statement
________________________________________
6. Accounting Ratios
(Types of Ratios used for Analysis)
Types of Ratios Purpose/Measure
Liquidity Ratios Short term solvency check
Solvency Ratios Long term solvency check
Activity Ratios Efficiency of operations
Profitability Ratios Profit earning capacity
________________________________________
7. Cash Flow Statement
→ Meaning, Importance & Preparation
8. Fund Flow Statement
→ Meaning, Importance & Preparation