What is the primary concern of the financial manager?
The main goal of the financial manager is to maximize the value of the firm to its owners. The value of a publicly owned corporation is measured by the share price of its stock. A private company's value is the price at which it could be sold.
Financial managers perform data analysis and advise senior managers on profit-maximizing ideas. Financial managers are responsible for the financial health of an organization. They create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.
Finance is concerned with the art and science of managing money. The finance discipline considers how business firms raise, spend, and invest money and how individuals divide their limited financial resources to achieve personal and family goals.
It is primarily concerned with acquiring and effectively utilizing financial resources for the activities of the firm. The goal of financial management is to maximize shareholder value while minimizing risk.
Typically, the primary goal of financial management is profit maximization. Profit maximization is the process of assessing and utilizing available resources to their fullest potential to maximize profits.
Top managers are ultimately responsible for the long-term success of the organization. They set long-term goals and define strategies to achieve them.
When it comes to managing finances, there are three distinct aspects of decision-making or types of decisions that a company will take. These include an Investment Decision, Financing Decision, and Dividend Decision.
- Investment decisions.
- Financial decisions.
- Dividend decisions.
The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.
- Balance sheets.
- Income statements.
- Cash flow statements.
- Statements of shareholders' equity.
What is financial management mainly concerned with quizlet?
Financial management is concerned with the acquisition, financing, and management of assets with some overall goal in mind.
Answer and Explanation: Better quality is associated with higher profitability in a healthcare organization, and thus, this is why financial managers ought to be concerned about quality initiatives.
The financial manager's most important job is to make the firm's investment decisions. This, also known as capital budgeting, is the most important job for this type of manager. This individual has to look at and prioritize investment alternatives. Both costs and returns need to be assessed.
Middle managers are in charge of facilitating any changes needed in an organization and creating an effective working environment. They administer day-to-day routines, monitors performance and make sure everything is done in compliance with organization's needs.
Explanation: The main concern of first-level managers is putting top management plans into action across the organization. This involves a focus on day-to-day operations, implementing the strategies and plans devised by higher management levels, and ensuring that staff carry out these plans effectively.
Originally identified by Henri Fayol as five elements, there are now four commonly accepted functions of management that encompass these necessary skills: planning, organizing, leading, and controlling.
Among the options provided, keeping an up-to-date record of past operations (option A) is generally considered the least important of the financial manager's responsibilities.
Explanation: because the basic functions of an finance management is to finance,budget and market. forecasting requires from all the sources like production department, sales department and manufacturing department. therefore, forecasting is not a function of finance manager.
Most financial management plans will break them down into four elements commonly recognised in financial management. These four elements are planning, controlling, organising & directing, and decision making.
Net income from the bottom of the income statement links to the balance sheet and cash flow statement. On the balance sheet, it feeds into retained earnings and on the cash flow statement, it is the starting point for the cash from operations section.
Which 2 of the 3 financial statements is most important?
Another way of looking at the question is which two statements provide the most information? In that case, the best selection is the income statement and balance sheet, since the statement of cash flows can be constructed from these two documents.
Income statement: This is the first financial statement prepared. The income statement is prepared to look at a company's revenues and expenses over a certain period, such as a month, a quarter, or a year.
Total Revenues – Total Expenses = Net Income
If your total expenses are more than your revenues, you have a negative net income, also known as a net loss. Using the formula above, you can find your company's net income for any given period: annual, quarterly, or monthly—whichever timeframe works for your business.
The four financial statements (in order of preparation) are the income statement, statement of retained earnings (or statement of shareholders' equity), balance sheet, and statement of cash flows.
The three main types of financial statements are the balance sheet, the income statement, and the cash flow statement. These three statements together show the assets and liabilities of a business, its revenues, and costs, as well as its cash flows from operating, investing, and financing activities.
