Accounting and Finance

Introduction: Working capital management is the excess of current assets over current liabilities. It is also called Net Working Capital or Working Capital Ratio. It involves managing the different components of both current assets as well as current liabilities. A positive working capital means that the company is able to pay off ...

Finance is the key to successful business operations. Without proper administration of finance no business can succeed. The importance of management is discussed below: 1. Financial results help in the measurement of the performance of the firm. Risk and profitability are two main factors which determine the value of the concern. ...

The financial manager performs the following functions: 1. Finance manager manages the funds in such a way to ensure their optimum utilisation with the available resources. 2. He forecasts the requirement of funds for both short term and long term purposes. 3. He also actively takes part in budgeting, risk management and financial ...

1. Financial Planning: It is the responsibility of the Chief Financial Officer to forecast the needs and sources of finance. He must also ensure the adequate supply of cash at proper time for smooth running of the business. Therefore, financial planning is necessary. He must also see that no surplus ...

A sound financial management is essential for all types of organisations – whether it is profit or non profit, government or private organisation. Most of the time we observe that the firms have liquidated. This is not because their technology was outdated or obsolete, but because of mismanagement of financial affairs. ...

Financial Management includes all the financial activities that take place in a business. According to Wester and Brigam, “Financial Management is an area of financial decision making harmonising individual motives and enterprise goals.” Joseph and Massie have defined Financial Management as “the operational activity of a business that is responsible for ...