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The Ananda Co-Operative Bank

The Ananda Co-Operative Bank

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Published by Prashanth Banu

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Published by: Prashanth Banu on Aug 29, 2012
Copyright:Attribution Non-commercial

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08/02/2014

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INTRODUCTION TO FINANCEMeaning
Finance is that business activity which is consent with the acquisition and financialneeds and overall objective of business enterprise.The word finance comes indirectly from Latin word FINIS under Roman lawcontract was not completed until there was a binding agreement for monetary orcredit arrangements. Finances are defined as issuance of distribution andpurchase of liabilities and equity claims issued for the purpose of generatingreview producing assets.Finance guides and regulates investment decision and expenditure and theexpenditure decision my pertain to recurring expenditure or may relate to capitalexpenditure programmers or capital getting to get the best out of available fundsis the tale of financial management thus finance objective of any corporate planmust be expressed in financial terms efficient management of its finance it is thebasic foundation of all kinds of economic activities.Finance is the lifeblood of business: procuring and judicious of finance are the twoimportant activities of financial managements. Adequate funds at disposal of business and funds of various types to carry out the business smoothly withoutthe fear of losing funds.
FINANCIAL MANAGEMENT
Financial management is managerial activity consent with planning controlling the
firms’ financial resources, which is interest to acidification. As well as practicing
managers to understand the theory of financial management is not merelyaccounting management. Besides accounting also involves, financial decision thatis how to rise funds loans are retain profit investment decision utilization of fundsis one activity are the other dividend decision quantum of retain to theinvestment
 
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The objective financial management is to find out the profitability and toinformation about financial position of the concern. Two principal statement of financial accounting are income and expenditure statement and balance sheet.Financial management is a measuring rod for success or failure of an organizationfinancial management is an exclusive excericse in economic, which includesa)
 
Funds managementb)
 
Control and reporting systemc)
 
Financial cost and management accountingd)
 
Tax planninge)
 
Budgets related disciplines
Importants of financial management
Financial management is applicable to every type of organization irrespective of its size, kind or nature. The core of financial policy is to maximize earnings in thelong run and optimize then in the short run. The reason for placing the financefunction in the hands of top management may be attributed to any of thesefollowing reasons. Finance is needed to promote or establish the business acquirefixed assets; make investigations such as market surveys, development of products.Financial decisions are crucial to the survival of the firm. At no cost can a firmaffords o threaten its solvency is affected by the flow of funds that is a result of various financial activities, top management being in position to co-ordinatethose activates retains financial function in its control. It also deals with financialplanning.Another important function of financial accounting is to make the informationmore useful and reliable. This is done

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