Financial Management Function (6) Flashcards
Financial accounts (performance)
Details the performance of an organisation over a defined period
Financial accounts (limited companies)
Limited companies must, by law, prepare financial accounts
Financial accounts (format)
Format of published financial accounts is set by law and accounting standards
Financial accounts (monetary)
Most financial accounting info is of a monetary nature
Financial accounts (historic)
Financial accoutns present an essentially historic picture of past operations
Management accounts (decision making)
Aid mangement to control activities and to help in decision making
Management accounts (legal requirement)
No legal requirement to prepare management accounts
Management accounts (format)
The format of management accounts is entirely at management discretion
Management accounts (non-monetary)
Management accounts incorporate non-monetary measures
Management accounts (historical)
Management accounts are both a historical record and a future planning tool
How does financial management differ from management accounting?
It is externally focused (what’s best for shareholders)
Concerned with longer-term decision-making issues
How does financial management differ from financial accounting?
Forward looking
Useful at providing info directly used for decision making
Has no set format
