Managerial Accounting

Lebanese Association of Certified Public Accountants

Exams' Program 2018

Managerial Accounting

 

Financial Statements Analysis

1- Basic financial statement analysis

  • Common size statements
  • Vertical common size statements
  • Horizontal common size statements

 

2- Financial ratios

  • Liquidity/Solvency Ratios
  • Working capital analysis
  • Sensitivity analysis on liquidity ratios
  • Capital structure analysis
  • Degree of financial leverage
  • Debit ratio (Leverage ratio)
  • Ratio analysis on debt/ liabilities
  • Capital structure and risk
  • Off-balance sheet financing
  • Operating activity analysis
  • Measuring the ability to pay
  • Earnings per share
  • Return on capital investment
  • Sustainable equity growth

 

3 - Profitability analysis

  • Return on investment
  • Return on assets
  • Return on equity and return on common equity
  • DuPont Model
  • Sustainable growth rate
  • Revenue analysis
  • Income measurement analysis

 

Corporate Finance

1 - Risk and return

  • Calculating risk
  • Calculating rates of return
  • Risk and return relationship
  • Risk and return in a portfolio context
  • Diversification
  • Capital asset pricing model

 

2 - Long term financial management

  • Risks and returns in investment and financing decisions
  • Bonds
  • Stocks
  • Common stocks
  • Preferred stocks
  • Derivatives
  • Cost of capital
  • Weighted average cost of capital
  • Marginal cost of capital
  • Use of cost of capital in investment decisions

 

3 - Raising capital

  • Intermediate term sources
  • Long term sources

 

4 - Working capital management

  • Cash management
  • Marketable securities management
  • Accounts receivables management
  • Inventory management
  • Types of short term credit
  • Short term credit management

 

5 - Corporate restructuring

  • Mergers and acquisitions
  • Divestitures
  • Evaluating factors for restructuring
  • Valuing a business for merger and acquisition
  • Business failures

 

6 - International finance

  • Foreign currency exchange
  • Fixed, flexible and floating currency exchange rates
  • Types of exchange risk exposure
  • Risk and rate of return for foreign investment
  • Financing and paying for international trade
  • Transfer pricing
  • Legal and social issues in global business

 

 

Decision Analysis

7 - Cost/ volume/ Profit analysis

  • CVP calculating the breakeven point
  • CVP (breakeven graph)
  • Operating leverage
  • The single product firm

 

8 - Marginal analysis

  • Special orders of pricing
  • Make versus buy
  • Sell or process further
  • Add or drop a segment
  • Income taxes

 

9 - Pricing

  • Setting prices
  • Cost based pricing
  • Laws of supply and demand
  • Price elasticity of demand
  • Government intervention in market operations
  • Impact of cartels in pricing

 

Risk Management

  1. Enterprise risk
  • Risk and expected loss

 

Investment decisions

1 - Capital budgeting process

  • Capital budgeting techniques
  • Incremental cash flows
  • Income tax considerations
  • Qualitative considerations in capital investments

 

2 - Discounted cash flow analysis

  • Required rate of return
  • Net present value
  • Internal rate of return
  • Comparison of NPV and IRR

 

3 - Payback and discounted payback

  • Uses of payback method
  • Discounted payback

 

4 - Risk analysis in capital investment

  • Sensitivity and scenario analysis
  • Certainty equivalents
  • Capital asset pricing