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Name: Mohammad Hussain Raja.

Student number: 202303867.
Student: RAJA, MOHAMMAD-HUSSAIN MR.
Module: Financial management for non-financial managers.
Campus: Damelin.
Due date: 28 March 2024
DECLARATION OF AUTHENTICITY
I......................................................................
MOHAMMAD HUSSAIN RAJA
Full Name and Surname as per ID
Hereby declare that the contents of this assignment are entirely my own work.

................................
Signature
Question 1 (20 marks)

Define the following terms and give examples:

1.1 Assets= Assets are resources owned by a company

or by an individual that hold value economically and
can be converted into cash. Examples include; vehicles,
equpiment, inventory and merchandise.

1.2 Owner's equity= This is the wealth left for the owner after all deductions
are made for liabilities and expenses. When all debt is paid off what is left is the
owner's equity. Examples; If you made a profit of R20 000 as a business owner
and if your full expenses/liabilities were amounted to R13 000 in full the remainder
R7000 after all deductions would be the owner's equity.

1.3 Liabilities= Liabilities are financial debts owed by an entity to another party or
entity. Liabilities are financial obligations as they are debts owing. Examples;
bank loans, accrued expenses, bonds payable and accounts payable.

1.4 Income= this refers to money earned and recieved due to the rendering of a
service or the sale of goods or the remuneration for work done or provided. Examples
are; rent income; salary and wages income; sales income, etc.

1.5 Expenses= Expenses refer to the money spent or needed to be paid to take care of
expenses and liabilities. Expenses is the incurred cost received by an individual or
business. Examples; Rent, salaries and wages, inventory, lights and water bills and
advertising costs.
Question 2 (20 marks)

Differences between financial accounting and financial management:

Financial accounting:

* Focuses on recording, summarizing and the reports of financial transactions in a

business.
* It involves the preparation of financial statements such as balance sheets, income
statements and also cash flow statements.
* To whom it may concern in regards to finanical accounting includes stakeholders
such as creditors, investors, regulators and tax authorities.
* Compliance with Generally Accepted Accounting Principles (GAAP)
or International Financial Reporting Standards (IFRS) is important in financial
accounting to ensure consistent work and accuracy in reports.

Financial management:

* Focuses on planning, organizing, directing and controlling financial activities within

the the business to succeed in the aim of achieving it's financial goals.
* It involves taking financial decisions related to investments, financing and dividend
policies to maximize shareholder money.
* Financial management considers both short term and long term financial implication
of decisions respectively and seriously.
* The primary audiences for financial management information is internal
stakeholders such as management, board of directors, and employees.
* It also involves risk assessment, financial analysis, budgeting and forecasting to
strengthen decision making processes.

Financial management focuses on internal stakeholders whilst Financial accounting

focuses on external stakeholders.
Question 3 (10 marks)

Outline the roles of a financial manager:

The roles of a financial manager include:

1. Financial planning.
2. Budgeting.
3. Financial analysis.
4. Investment management.
5. Cash flow management.
6. Risk management.
7. Captial structure management.
8. Tax planning
9. Financial strategic decision making.
10. Financial reporting.