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Quick Revision Table
| Concept | Key Detail |
|---|---|
| Financial statements (main 3) | P&L Account, Balance Sheet, Cash Flow Statement |
| Current Ratio ideal | 2:1 (Current Assets : Current Liabilities) |
| Quick Ratio ideal | 1:1 (excludes inventory & prepaid) |
| Cash Flow Statement standard | AS-3 (ICAI) |
| Cash flow — 3 activities | Operating, Investing, Financing |
| Direct method | Lists actual cash receipts/payments from operations |
| Indirect method | Adjusts net profit for non-cash items |
| Trend analysis base | Base year = 100; subsequent years expressed as index |
| Common-size statement | Each item as % of net sales (P&L) or total assets (BS) |
| Responsibility accounting — 4 types | Cost Centre, Revenue Centre, Profit Centre, Investment Centre |
| Cost Centre | Only costs — e.g., production department |
| Investment Centre | Profit + capital employed — measured by ROI |
| HRA — founder | Rensis Likert (1960s), University of Michigan |
| HRA approaches | Historical Cost, Replacement Cost, Economic Value, Opportunity Cost |
| BRSR mandatory since | FY 2022-23, top 1,000 listed companies (SEBI mandate) |
| Triple Bottom Line | People, Planet, Profit — John Elkington, 1994 |
| Green GDP | GDP − Environmental Degradation Cost − Resource Depletion Cost |
| CSR mandate | Companies Act 2013, Section 135 |