What is short-term financial management?
– Short-term financial management is best pursued within the context of a company’s cash budgeting. Advertisement – Cash budgeting is the setting-forth of the company’s...
Financial Management
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What are the uses of ratios?
Firstly, the liquidity ratio as adequate liquidity is quite important since it indicates the firm’s ability to meet current/short term obligations. Creditors are interested in...
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What do you mean by liquidity funds? How can the liquidity of a firm be assessed?
Liquidity of funds means the availability of liquid cash to meet the immediate commitments. It helps in analyzing the liquidity position of the firm .Furthermore;...
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Cash Management Models
CASH MANAGEMENT MODELS 1) Baumol’s Model —Baumol (1952) Cash can be managed in the same manner as inventory using Economic Order Quantity Model (EOQ ...
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Financial system in India
Financial system in India In order to understand financial management better, we need to understand the “Financial System” that exists in India. Any country needs...
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Differentiate between static and dynamic analysis
SR.NO Dynamic analysis Static analysis 1. It requires financial statements of 2 or more years. It requires financial statements of one year. 2. It gives...
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What are the economic advantages of leasing?
– Leasing allows for higher tax benefits that the alternative of borrowing and purchasing an asset. – Information asymmetries exist on certain types of assets,...
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Accounts function
Accounts function Core accounts have to take care of the following areas: Maintaining accounts on a regular basis for all items of income, expenditure, assets...
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What is Dividend Irrelevancy?
– The net result of changing a company’s dividend is the substitutability of capital gains (i.e. share value increases) as the dividend is reduced for...
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Acquisition of necessary capital
Acquiring Necessary Capital After deciding the financial requirement, the finance manager should concentrate how the finance is mobilized and where it will be available. It...
