Financial Documents: Definition, Meaning, Importance, Types, Objectives, Limitations
What are Financial Documents? Financial documents contain summarised information about the firm’s financial affairs. Its main purpose is to present the firm’s financial situation to the users. The financial documents are the end-product of the financial accounting process. These documents present financial information in concise and capsule form. Financial documents are prepared by top management […]
Balance Sheet and Profit and Loss Account: Meaning, Definition, Nature, Concepts, Difference
What is Balance Sheet? Balance Sheet: The balance sheet is prepared by a firm to present its financial position at a given point in time. The balance sheet can be titled as a statement of financial position, statement of assets and liabilities, position statement, etc. Definition of Balance Sheet The balance sheet presents the assets […]
Financial Planning: Meaning, Types, Objectives, Steps
What is Financial Planning? Financial planning means preparing a financial plan. A financial plan is also called a plan. A financial plan is an estimate of the total capital requirements of the company. It selects the most economical sources of finance. It also tells us how to use this finance profitably. A financial plan gives […]
Financial Forecasting: Meaning, Advantages, Tools
What is Financial Forecasting? The science of financial forecasting is becoming increasingly important as a tool for appraising the real worth of a growing concern. It helps in arriving at the implications of what is contained in the statements themselves. An analysis of the several tools of financial forecasting provides an important basis for evaluating […]
Mergers and Acquisitions: Types, Advantages and Disadvantages, Legal Procedure
What is Merger and Acquisition? Mergers and acquisitions are the most popular means of corporate restructuring or business combinations in comparison to amalgamation, takeovers, spin-offs, leverage buy-outs, buy-back of shares, capital re-organization, sale of business units and assets, etc. Corporate restructuring refers to the changes in ownership, business mix, assets mix, and alliances with a […]
Functions of A Finance Manager
The finance manager’s main responsibilities are to procure and effectively utilize funds while considering the financial implications of all decisions. All decisions involving the management of funds fall under their jurisdiction. The finance manager must manage funds to optimize utilization and ensure that procurement is balanced in terms of risk, cost, and control. The accountant’s […]
Characteristics of Financial Management
The term financial management has emerged from the generic discipline of management. In order to understand financial management, it is better to start with an understanding the term management. Management, simply put, is all about securing the optimal use of the resources at the disposal of the firm towards the attainment of some predetermined goals. […]
Field of Finance
The academic discipline of financial management may be viewed in terms of various specialized fields. In each field, the financial manager is dealing with the management of money and claims against money. Distinctions arise because different organizations pursue different ‘Objectives and do not face the same basic set of problems. Field of Finance These are […]
10 Nature of Financial Management
A business receives funds from various sources such as investors, lenders, and past profits. These funds are used for different purposes such as buying assets for production, maintaining inventory, and keeping cash on hand. These funds are considered static over time, but changes in the flow of funds are known as funds flow. Finance is […]
Financial Management: Definitions, Meaning, Functions, Objectives, Scopes, Importances
What is Financial? Finance is defined as the provision of money at the time when it is required. Every enterprise, whether big, medium, or small, needs finance to carry on its operations and to achieve its target. In fact, finance is so indispensable today that it is rightly said to be the blood of an […]
