Financial management Flashcards
Define financial management
refers to the management of the finance funtion in an organisation.The aim is to maximise shareholder wealth also reffered to as shareholder value
define accounting
refers to recording and reporting past business activities
define management accounting
refers to the future of the organisation and invovles making strategic decisions with operations going forward.
Discuss financial statements
*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 .
Name the 5 financial statements
*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