What is “Finance” and what is its importance

Type :

Term papers

Pages :

27 pages

Format :

.doc

Published date :

06/15/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Introduction to finance
Classification of finance
Definitions of financial statement
1. Types of financial statements
Need of the study
Objectives of the study
Usage of financial statements
Limitations of financial statements
Importance of financial statement analysis
Applications of financial performance analysis
Limitations of financial performance analysis
Conclusion
Bibliography

Abstract

In our present day economy, "finance" is defined as the provision of money at the time when it is required. Every enterprise, whether big, medium of small, needs finance to carry on its operations and to achieve its targets.
finance is so indispensable today that it is the lifeblood of an enterprise. Without adequate finance, no enterprise can possibly accomplish its objectives.

"finance" is the life blood and the nervous system of any business organization. Just as circulation of blood, is necessary in the human body to maintain life. finance is necessary in the business org. for smooth running of the business.

Financial management involves managerial activities concerned with the procurement and utilization of funds for business purpose the finance function does with procurement of money taking in to consideration of today's as well as future need and its effective utilization. Since finance is required to purchase of machinery and raw materials, to pay salaries and wages also for day-to-day expenses.

According to the American Institute of certified public accountants: "Financial statement reflect a comparison of facts, accounting conventions and personnel judgments and conventions applied affects the materially".