Quick Answer: What Are The Three Types Of Financial Management?

What are the five principles of financial management?

The five principles are consistency, timeliness, justification, documentation, and certification..

What are the 6 basic financial statements?

The Financial Accounting Standards Board (FASB) has defined the following elements of financial statements of business enterprises: assets, liabilities, equity, revenues, expenses, gains, losses, investment by owners, distribution to owners, and comprehensive income.

What are the 5 basic financial statements?

The preparation of the financial statements is the summarizing phase of accounting. A complete set of financial statements is made up of five components: an Income Statement, a Statement of Changes in Equity, a Balance Sheet, a Statement of Cash Flows, and Notes to Financial Statements.

What is the main objective of financial management?

Profit maximization happens when marginal cost is equal to marginal revenue. This is the main objective of Financial Management. Maintaining proper cash flow is a short run objective of financial management.

What are the 5 sources of finance?

Sources Of Financing BusinessPersonal Investment or Personal Savings.Venture Capital.Business Angels.Assistant of Government.Commercial Bank Loans and Overdraft.Financial Bootstrapping.Buyouts.

What are the three types of financial management decisions and examples?

There are three decisions that financial managers have to take:Investment Decision.Financing Decision and.Dividend Decision.

What is financial management and its types?

There are four main financial decisions- Capital Budgeting or Long term Investment decision (Application of funds), Capital Structure or Financing decision (Procurement of funds), Dividend decision (Distribution of funds) and Working Capital Management Decision in order to accomplish goal of the firm viz., to maximize …

What are the types of financial?

Here are the main types of financial services for you to consider:Banking. Banking includes handing deposits into checking and savings accounts, as well as lending money to customers. … Advisory. … Wealth Management. … Mutual Funds. … Insurance. … Financial Services Institutions.

What are the four elements of financial management?

There are four recognized elements of financial management: (1) planning, (2) control- ling, (3) organizing and directing, and (4) decision making. The four divisions are based on the purpose of each task.