Financial management

Question 1

Define financial management

Answer 1

refers to the management of the finance funtion in an organisation.The aim is to maximise shareholder wealth also reffered to as shareholder value

Question 2

define accounting

Answer 2

refers to recording and reporting past business activities

Question 3

define management accounting

Answer 3

refers to the future of the organisation and invovles making strategic decisions with operations going forward.

Question 4

Discuss financial statements

Answer 4

*summarises the financial activities of an organisation and provides useful information to the various users of financial information.
*Various internal and external decisions
*Provide information of the current or prior years in order to put the current results into persepective .

Question 5

Name the 5 financial statements

Answer 5

*Statement of financial position
*Statement of comprehensive income / seperate statement of profit or loss and a statement of comprehensive income
*statement of changes in equity
*statement of cash flows
*Notes to the financial statements