Post thumbnail

Object of financial management Objective of financial management is to maximise shareholder wealth, it is measure by market capital of the company. Market capital is represented by number of share multiplied with share price. Market capital = Number of share x Market share price Shareholder is the owner of the company they appoint management the…

Read More Financial management Scope

Concept of Capital Budgeting Capital budgeting is primarily concerned with how a firm makes decisions on sizable investments in long-lived projects to achieve the firm’s overall goal. This is the decision area of financial management that establishes criteria for investing resources in long-term real assets. Investment decisions (on sizable long-term projects) today will determine the…

Read More Capital Budgeting

The basis of financial analysis, planning and decision making is financial information. A firm prepares final accounts viz. Balance Sheet and Profit and Loss Account providing information for decision making. Financial information is needed to predict, compare and evaluate the firm’s earning ability. Profit and Loss account shows the concern’s operating activities and the Balance Sheet depicts…

Read More Financial Statement Analysis

Introduction of financial management : Basics and Definitions  The primary task of an Accountant is to deal with funds, ‘Management of Funds’ is an important aspect of financial management in a business undertaking or any other institution like hospital, art society, and so on. The term ‘Financial Management‘ has been defined differently by different authors.…

Read More Introduction to Financial Management