10 PRINCIPLES THAT FORM THE BASICS OF FINANCIAL MANAGEMENT
1. THE RISK-RETURN TRADE-OFF--WE DON'T TAKE ON ADDITIONAL RISK UNLESS WE EXPECT TO COMPENSATED WITH ADDITIONAL RETURN
2. THE TIME VALUE OF MONEY- DOLLAR RECEVIED TODAY IS WORTH MORE THAN A DOLLAR RECEIVED IN TH FUTURE.
3. CASH--NOT PROFITS--IS KING
In Measuring wealth or value, we will use cash flows, not accounting, as our measurement tools.
Remember:
It is cash flows, not profits that are actually received by the firm and can be reinvested.
4. INCREMENTAL CASH FLOWS -IT'S ONLY WHAT CHANGES THAT COUNTS
5. THE CURSE OF COMPETITIVE MARKETS -WHY IT'S HARD TO FIND EXCEPTIONALLY PROFITABLE PROJECTS
6. EFFICIENT CAPITAL MARKETS - THE MARKETS ARE QUICK AND PRICES ARE RIGHT.
7. THE AGENCY PROBLEM -MANAGERS WON'T WORK FOR OWNERS UNLESS IT'S IN THEIR INTEREST.
8. TAXES BIAS BUSINESS DECISIONS
9. ALL RISK IS NOT EQUAL-SOME RISK CAN BE DIVERSIFIED AWAY, AND SOME CANNOT
10. ETHICAL BEHAVIOR IS DOING THE RIGHT, AND ETHICAL DILEMMAS ARE EVERYWHERE IN FINANCE
Read your textbook
This is a good power point presentation that mentions these principles:http://webpages.uncc.edu/~lcbaran/downloads/Ch_1_10Principles.ppt
A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity. In British English-including United Kingdom company law-a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants. For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements, accompanied by a management discussion and analysis.
If you believe a college education is out of your reach, think again. A tremendous number of financial resources can help make your dream of a college degree a reality. The key is educating yourself about the financial aid process. Start by familiarizing yourself with the most common types of financial aid. The two basic categories are gift financial aid in the form of scholarships and grants; and self-help financial aid in the form of student loans and work-study programs. Financial aid can be federal- or campus-based. Most students use a combination of the two.
Financial is the adjective form.
Read your textbook
This is a good power point presentation that mentions these principles:http://webpages.uncc.edu/~lcbaran/downloads/Ch_1_10Principles.ppt
The Accounting Principles are the assenition rules of accounting and the application of these rules, method & procedures to actual practice of accounting. These Accounting principles have been.The basic principle of accounting is to identify, record, and communicate financial transactions. The simple form of the basic accounting equation is assets equals liabilities plus equity.
Principles of Cost Accounting:- 1. It implies the cause ,and effect in the department in some way or the other to which it has incurred. 2. It takes place after it has incurred. 3. must not be on the determinance of prudence, it must be based on actual facts and figures. 4. past cost should not form the basis of future cost.
A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity. In British English-including United Kingdom company law-a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants. For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements, accompanied by a management discussion and analysis.
inancial management is the management of financial functions. Financial functions include begaimana obtain funds (raising of funds) and how to use these funds (allocation of funds). Financial managers are concerned with the determination of total assets worth of investments in various assets and choose the sources of funds to finance the asset. To obtain funds, financial managers can obtain it from within and outside the company. Sources from outside the company come from the capital market, may take the form of debt or equity capital.
1)going concern 2)consistency 3)materiality 4)principle of prudence 5)business Entity Accounting principles are those rules and concepts that are generally accepted as standards for the field of accounting. These are standardized by governing bodies such as GAAP and IASB. Few core principles are Accrual concept, Business Entity Concept, Time Period Assumption etc.
The adverb form of basic is basically. There is no verb for basic.
the colonist used the basic principles of the may flower compact in which was a direct form of government when they went to america for the king. the fact the colonist still used this form as a way to run country kind of pissed off the king a little ha.
A basic form is a form of a word used as the headword in a dictionary.
The verb form of financial is finance. As in "to finance something or someone".
Main source of Finance may include anything like Debentures, Bank Loans, Equity Shares, Preference Shares, Public Deposits,Accommodation Bills.........Finance in this case would be money (in any way shape or form) So financial Management is referring to the management of money, including but not limited to cash, checks, assets, property, and stocks holdings.