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Financial transactions must be recorded, classified, stored and eventually reported to the managers.
- OBJECTIVES OF FINANCIAL MANAGEMENT
o Liquidity Refers to cash reserves being held, or to the ability to turn and investment into cash with little or no delay or loss of capital
o Solvency Refers to a business ability to pay its debts when due, and remain a going concern
o Profitability Refers to how profitable the business is from the perspectives of profit on sales, assets and shareholders equity
o Efficiency Examines how well working capital is managed, that is how quickly cash is collected from debtors, inventory sold and creditors paid...
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