Importance of banking fiance

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INTRODUCTION OF FINANCE

In the modern-oriented economy, finance is one of the basis foundations

of all kinds of economic activities. It is the master key, which provides access

to all the sources for being employed in manufacturing and merchandising

activities.

Finance is the lifeblood of an enterprise, every enterprise, irrespective

of size, needs finance to carry on its operation’s and to achieve its target’s. in

our present day economy finance is the provisions of money at the time when

it is required and without adequate finance, no enterprise can possibly

accomplish its objectives.

According to the American Institute of certified public accountants,

financial statements reflect, “A combination of recorded facts, accounting

conventions and personal judgments and conventions applied them materially.”

FINANCIAL MANAGEMENT

Financial management is an management which is related to deal

management is concerned with the acquisition, financing and management of

assets with some overall goal in mind.

Financial management influences the profitability or return on

investment of a business. The choice of capital investment decisively affect the

profitability of an undertaking.

Financial management affects the solvency position of a business.

Solvency refers to the ability to service debts paying interest and repaying

principle as these become due. Profitability and nature of debts both concerns

of financial management-govern the solvency aspect.

THE BASIC OBJECTIVES OF FINANCIAL MANAGEMENT ARE

1. Ensuring a fair return to shareholders.

2. building up reserves for growth and expansion

3. Ensuring maximum operational efficiency by efficient and effective

utilization of finance.

4. Ensuring financial discipline in the organization.

FINANCIAL STATEMENT

The financial statement provides a summary of the accounts of business

enterprises. The balance sheet shows the result of operation during ascertain

period.

TYPES OF FINANCIAL STATEMENTS

1. A balance sheet

2. An income statement

BALANCE SHEET

A tabular statement of summary of balances carried forward after an

actual and constructive closing of books of account and kept according to

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INTRODUCTION OF FINANCE In the modern-oriented economy, finance is one of the basis foundations of all kinds of economic activities. It is the master key, which provides access to all the sources for being employed in manufacturing and merchandising activities. Finance is the lifeblood of an enterprise, every enterprise, irrespective of size, needs finance to carry on its operation’s and to achieve its target’s. in our present day economy finance is the provisions of money at the time when it is required and without adequate finance, no enterprise can possibly accomplish its objectives. According to the American Institute of certified public accountants, financial statements reflect, “A combination of recorded facts, accounting conventions and personal judgments and conventions applied them materially.” FINANCIAL MANAGEMENT Financial management is an management which is related to deal management is concerned with the acquisition, financing and management of assets with some overall goal in mind. Financial management influences the profitability or return on investment of a business. The choice of capital investment decisively affect the profitability of an undertaking. Financial management affects the solvency position of a business. Solvency refers to the ability to service debts paying interest and repaying principle as these become due. Profitability and nature of debts both concerns of financial management-govern the solvency aspect. THE BASIC OBJE ...
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