Important questions are provided at the end

The main purpose of studying this subject is to understand how accounts are drawn. For the students who are not from background, this subject will be little tough. The more time non students dedicate on this subject, the more perfect they will become. Remember, you are not studying this subject to become an accountant. You are studying this subject only to get yourself acquainted with accounting process and how financial statements are made. For students this subject is cake walk. They can score maximum marks in this subject by putting minimum effort. When you score more in the first semester it will be very beneficial for your overall MBA percentage.

As a manager, you have to take various decision and almost all decisions have financial implications. The study of this subject enables you to better understand how the decisions taken affects the financial statement. All impact of financial decisions such as financing decisions, investment decisions, operating or working capital decisions and dividend decisions will be reflected on the financial statements of the company. The profit and loss account, the Balance Sheet & Cash Flow Statement together are termed as Financial Statements.

The well being of an organisation is known with the help of financial statements. This subject is not all about preparing depreciation accounts, final accounts, Funds flow statements, Cash flow statements, and Ratio Analysis. This subject deals with how to take decisions based on these statements. This subject helps managers in taking effective decisions.

Tomorrow, if you work as an equity analyst at a stock broking firm then majority of your investment decision and investment analysis will be based on this subject. You will depend more on the Financial statements and ratio analysis. This type of analysis is part of Fundamental Analysis which is one of the essential type of investment analysis carried out before making an investment in financial markets.



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  1. Pingback: OU-MBA Important Questions I semester | Knowledge Hub

  2. Pingback: MBA I SEM – Important Questions | Knowledge Hub

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