SimonMash.com | Kerala Plus One & Plus Two Study Notes, Question Papers, Answer Keys, Resources

Important Topics: Meaning, Objectives, and Benefits of Cash Flow Statement Definitions: Cash, Cash Equivalents, Cash Flows Classification of Activities: Operating, Investing, Financing Treatment of Peculiar Items (Interest, Dividend, Tax, Extraordinary Items) Preparation of Cash Flow Statement using Indirect Method Preparation of Cash Flow Statement using Direct Method Comprehensive Illustrations (Preparation from Balance Sheets and Additional Information) Meaning of Cash Flow Statement A cash flow statement is the financial statement that measures the cash generated or used by a company in a given period. A cash flow statement provides information about the historical changes in cash and cash equivalents of an enterprise by classifying cash flows into operating, investing and financing activities. A Cash-Flow statement may be defined as a summary of receipts and disbursements of cash for a particular period of time. Simple Explanation: A cash flow statement is ...

Important Topics: Meaning and Objectives of Ratio Analysis Advantages and Limitations of Ratio Analysis Types of Ratios (Liquidity, Solvency, Activity, Profitability) Liquidity Ratios: Current Ratio, Quick Ratio (Acid Test Ratio) Solvency Ratios: Debt-Equity Ratio, Debt to Capital Employed Ratio, Proprietary Ratio, Total Assets to Debt Ratio, Interest Coverage Ratio Activity (Turnover) Ratios: Inventory Turnover, Trade Receivables Turnover, Trade Payables Turnover, Working Capital Turnover, Fixed Assets Turnover, Capital Employed Turnover Profitability Ratios: Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio, Return on Investment (ROI), Return on Shareholders' Funds (RONW), Earnings per Share (EPS), Book Value per Share, Dividend Payout Ratio, Price/Earning Ratio Meaning of Accounting Ratios A ratio is a mathematical number calculated as a reference to relationship of two or more numbers and can be expressed as a fraction, proportion, pe...

Important Topics: Meaning and Significance of Financial Statement Analysis Objectives of Financial Statement Analysis Tools of Financial Analysis (Comparative Statements, Common Size Statements, Trend Analysis, Ratio Analysis, Cash Flow Analysis) Comparative Statements: Meaning, Preparation, and Interpretation (Income Statement and Balance Sheet) Common Size Statements: Meaning, Preparation, and Interpretation (Income Statement and Balance Sheet) Limitations of Financial Analysis Meaning of Analysis of Financial Statements The process of critical evaluation of the financial information contained in the financial statements in order to understand and make decisions regarding the operations of the firm is called 'Financial Statement Analysis'. It is basically a study of relationship among various financial facts and figures as given in a set of financial statements, and the interpretation thereof to gain an insight into the profitability and operational efficiency ...

Important Topics: Meaning and Nature of Financial Statements Objectives of Financial Statements Types of Financial Statements (Balance Sheet, Statement of Profit and Loss) Form and Content of Balance Sheet as per Schedule III of Companies Act, 2013 Detailed Explanation of Balance Sheet Items (Share Capital, Reserves, Borrowings, etc.) Form and Content of Statement of Profit and Loss as per Schedule III Uses and Importance of Financial Statements Limitations of Financial Statements Meaning of Financial Statements Financial statements are the basic and formal annual reports through which the corporate management communicates financial information to its owners and various other external parties which include investors, tax authorities, government, employees, etc. These refer to: the balance sheet (position statement) as at the end of accounting period, the statement of profit and loss of a company and the cash flow statement. Simple Explanation: Financial stateme...

Important Topics: Meaning of Debentures and Distinction between Shares and Debentures Types of Debentures (based on security, tenure, convertibility, coupon rate, registration) Issue of Debentures for Cash (at par, at premium, at discount) – Journal Entries Over Subscription of Debentures Issue of Debentures for Consideration other than Cash Issue of Debentures as Collateral Security Terms of Issue of Debentures (various combinations of issue and redemption prices) Interest on Debentures and Tax Deducted at Source (TDS) Writing off Discount/Loss on Issue of Debentures Redemption of Debentures: Methods and Accounting Treatment Redemption by Payment in Lump Sum and in Instalments Redemption by Purchase in Open Market Redemption by Conversion Debenture Redemption Reserve (DRR) and Debenture Redemption Investment (DRI) Meaning of Debentures Debenture: The word 'debenture' has been derived from a Latin word 'debere' which means to borrow. Debenture is ...