Financial management Flashcards

1
Q

Define financial management

A

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

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2
Q

define accounting

A

refers to recording and reporting past business activities

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3
Q

define management accounting

A

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

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4
Q

Discuss financial statements

A

*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 .

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5
Q

Name the 5 financial statements

A

*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

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