Business activities concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of a business enterprise
Accounting
A managerial tool and administrative tool that involves the financial transactions so that a clear summary of what has happened to the business money can be traced over time
Main financial statements
Balance sheets
Cash Flow Reports
Revenue statements
Balance sheets
Annual or interim balance sheets
Cash Flow Reports
Statements of liquidity
Revenue statements
Also called profit and loss statements or income statements
Financial Objectives
Liquidity
Profitability
Efficiency
Growth
Solvency
Liquidity
How quick an asset can be turned into cash, without affecting market value. This means that businesses have enough cash to fund their day-to-day activities
Profitability
The money a business makes from its operations after all expenses have been accounted for
Efficiency
The ability of an organisation to maximise the return from its assets with minimal costs
Growth
The ability of businesses to expand its activities, through increased production, higher sales, and expanded product range
Solvency
The extent to which a business can meet its financial commitments in the longer term
