Explain the importance of financial planning

Assignment Help Financial Accounting
Reference no: EM13491856

Understanding the implications of finance as a resource within a business

You will need to:

- analyse the costs of different sources of finance
You will need to research this for each of the identified sources, but as a guide, there will be financial costs on some sources - mainly interest added to the amount, and constraints on pay-back timescales (a "pressure" cost). On others there will be the "cost" of loss of control - as would be the case with some loans, grants, and share issues.

- explain the importance of financial planning
In essence, without financial planning there is no way of being certain that the organisation can fund its own activities. You will need to give more detail on how this is done.

- assess the information needs of different decision makers
In the context of Managing Finance, you need to identify the decision makers inside an organisation eg managers and specialists operating at different levels, and external decision makers such as shareholders, funding organisations, the government - and discuss the differences in the amount and quality of (financial/accounting) information they need.

- explain the impact of finance on the financial statements
Here you need to describe how the influx of funds - eg loans, grants, share issue income, retained profits - can influence the appearance of the profit and loss account and the balance sheet, and you should also briefly mention how organisations must be transparent about this.

 

Reference no: EM13491856

Questions Cloud

Explain at a particular temperature the equilibrium constant : At a particular temperature the equilibrium constant for the reaction: H2(g) + F2(g) ? 2HF(g) is K = 36.0. A reaction mixture in a 10.00-L flask contains 0.42 moles each of hydrogen and fluorine gases plus 0.15 moles of HF.
Find the actual power of the bulb in the circuit described : A light bulb marked "100 W [at] 120 V" is screwed into a socket at one end of a long extension cord in which each of the two conductors has a resistance of 0.776
Analyse budgets and make appropriate decisions : Making financial decisions based on financial information. You will need to use an example either from your present employer, or you can use the published financial statements of companies such as British Airways, which are published on the intern..
What is the magnitude of the charge on the drop : A positively charged oil drop of mass 2.4 10-15 kg is placed in the region of a uniform electric field between two oppositely charged, What is the magnitude of the charge on the drop
Explain the importance of financial planning : In essence, without financial planning there is no way of being certain that the organisation can fund its own activities. You will need to give more detail on how this is done.
State the equilibrium constant expression for reaction : What is the equilibrium constant expression for the following reaction: C5H5NH(aq) + H2O(l) ? C5H5NH2+(aq) + OH-(aq)
Find the angle between resultant vector and the horizontal : What is the angle between the resultant vector and the horizontal? If the magnitude of the resultant is zero, then enter 'none'
Pass the necessary journal entries : Preparing the trial balance, it is learnt that Mr.X a debtor has becomeinsolvent and nothing could be recovered from him and, therefore the entireamount of Rs.5,000 due from him was irrecoverable.
What is the current in the lamp : A lamp (R = 145 ), an electric heater (R = 24 ), and a fan (R = 49 ) are connected in parallel across a 121 V line. What is the current in the lamp

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial services board places investa under curatorship

The current value was determined by discounting all future cash flows over the revised remaining term at 3%, as indicated in the letter from Fortune Ltd.

  Qnittany company pays its sole shareholder joe papa a

qnittany company pays its sole shareholder joe papa a salary of 100000. at the ending of each year the company pays joe

  Accounting and the time value of money

Current and Future computations of a single sum of money and current and Future computations of an annuity.

  What price would have been charged to the customer if job

What price would have been charged to the customer if the job required $3,3000 in materials and $4,5000 in direct labor cost, and the company priced its jobs at 20% above the job’s cost according to the accounting system?

  Since smith manufacturing is only in its second year of

since smith manufacturing is only in its second year of operations management is unusual with the process of issuing an

  Company''s cash budget and its income statement

Which of the following statements is most correct concerning the relationship between a company's cash budget and its income statement

  Determine present value of each plan

Determine the present value of each plan. (Round present value factor calculations to 4 decimal places, e.g. 0.2525. Round all other calculations and final answer to 0 decimal places, e.g. 5,250.)

  Illustrate what is amount of impairment loss under us gaap

The following information was taken from the fixed asset records of Klein Inc., as of December 31, 2007: Illustrate what is the amount of Impairment Loss under US GAAP?

  Illustrate what about chain of custody before someone

Illustrate what about chain of custody before someone from the legal system discovers the evidence? If the evidence passes through several hands first, does that invalidate the chain of custody?

  Detailsusing the library and the internet identify a

detailsusing the library and the internet identify a publically held multinational company of your choice. research its

  Illustrate what amount of revenue and cash flow resulted

Merchandise inventory costing $20,000 was sold to customers for $28,000 cash. Illustrate what amount of revenue and cash flow resulted from this transaction?

  At illustrate what price was the bond issued

The bond has a stated interest rate of 6 percent. On January 1, 2011, when the bond was issued, the market rate was 8 percent. The bond pays interest twice per year, on June 30 and December 31. At illustrate what price was the bond issued?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd