Professional Documents
Culture Documents
FINANCIAL
MANAGEMENT
SCOPE:
Financial management is limited to the acquisition,
financing and management of assets.
INVESTMENT DECISIONS
- which determine how scare or limited
resources are committed to projects
- It should consider profitability that will lead
to the creation of wealth
FINANCING DECISIONS
- asserts the mix of debt and equity or capital
structure decision
Financial leverage refers to the use of debt to
acquire additional assets. Financial leverage is
also known as trading on equity. Principle of
Financial leverage must be consider when
selecting debt-equity mix.
DIVIDEND DECISIONS
- concerned with the determination of
quantum of profits to be distributed to
owners, the frequency and the amount to be
retained.
Comparison
between FA
and MA
Basis
Financial Accounting
Management Accounting
Comparison
between FA
and MA
4.Past and
future data
5. Periodic and
continuous
reporting
6. Accounting
standards
Comparison
between FA
and MA
7.Types of
statements
prepared