FINMA 3100 WINNIE D.C.

VILLANUEVA

CONCEPTS, ASSUMPTIONS AND PRINCIPLES

The CAP that made an impact in our preceding subject; FINMA 2000 – Financial
Management are the role of money in our economy, history of Philippine currency, Philippine
monetary system, modern measures of money, credit, its uses, classifications and risks, credit
instrument and its negotiation, the financial system, banking institutions, history, and its
functions, commercial bank management, overview of business finance, forms of business
organizations, and financial statement analysis.

While in FINMA 2200 – Financial Markets are introduction and overview of financial
system, money and interest rates, financial instruments, financial intermediaries, central banks
and monetary policy, financial regulators, securities and exchange commission, and insurance
commission.

The concepts, assumptions, and principles I learned from the two subjects are crucial in
providing pathways to attain goals and objectives, in measuring organizational efficiency
through proper allocation, acquisition, and management. It provides guidance in financial
planning and helps to take good financial decisions. The study of financial management seeks
to maximize the wealth and value by maximizing the returns and reducing the risks to
shareholders. It involves planning, directing, and controlling the financial activities such as
procurement and utilization of funds. It means applying general management principles to
financial resources.

On the other hand, financial markets promote greater economic efficiency by

channeling funds directly the flow of savings and investment in ways that facilitate the
accumulation of capital and opportunities. I understand the concept of stock market, the role of
financial system in economic development, and the key roles of financial markets.

As an accounting student, I learned about valuing financial decisions, understanding

crucial effects of financial management, observing the financial markets, knowing the
advantages and benefits of studying the subjects which are quite helpful in my future career
and chosen field.

-CLAUS, RODEL NOVESTERAS

BS IN ACCOUNTANCY 3-2

ACTIVITY 3: CONCEPTS, ASSUMPTIONS, & PRINCIPLES (CAP)