BASIC FINANCIAL CONCEPTS at IOB

What is FINANCIAL CONCEPTS?

Basic financial concepts are based on microeconomic and macroeconomic theories. The finance field includes three main subcategories: personal finance, corporate finance, and public (government) finance. Consumers and businesses use financial services to acquire financial goods and achieve financial goals.

Overview

Your decisions will affect the financial well-being of your organisation and understanding how this happens will help you to contribute more effectively and make better decisions. An understanding of finance is also very helpful for your personal life, as it helps you to feel more confident in making decisions.”

Frequently Asked Questions

What is the most important financial concept?

“What’s most important is whether your income is rising at the same rate as inflation,” Storjohann says. If your pay is not keeping up with inflation, you won’t be able to afford much a few years down the road.

What are the basic concepts of financial management?

Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.

What is finance example?

Finance is defined as to provide money or credit for something. An example of finance is a bank loaning someone money to purchase a house. The definition of finance is the management of money matters. An example of finance is the department that handles the budgets for a company.

What is financial concept experience?

Ideally, the basic financial concepts will cover everything from banking, understanding credit and credit cards, how to save money, investing basics, and how to earn more money.

What are the accounting concepts?

Accounting concepts are the generally accepted rules and assumptions that assist accountants in preparing financial statements. In layman’s terms, they are the fundamental building blocks of the transactions of the business.

Why is finance important in life?

Personal finance can help us increase our cash flow. Keeping a track of our expenditures and spending patterns enables us to increase our cash flow. Tax planning, spending prudently, and careful budgeting ensure that we do not lose our hard-earned money on frivolous expenses.

How can I improve my financial knowledge?

There are many short-term courses that you can pick up and one has to first decide which aspect he wants to obtain deeper knowledge. For example, a course in Personal Finance often involves programmes like Chartered Wealth Manager and Certified Financial Planner.

What is the concept of financial manager?

Financial managers generally oversee the financial health of an organization and help ensure its continued viability. They supervise important functions, such as monitoring cash flow, determining profitability, managing expenses and producing accurate financial information.

What is the concept of management?

management can be defined as the process of achieving organizational goals through. planning, organizing, leading, and controlling the human, physical, financial, and information. resources of the organization in an effective and efficient manner” (Bovée et al. 1993, p. 5)

What is the main purpose of financial management?

The primary objectives of financial management are: Attempting to reduce the cost of finance. Ensuring sufficient availability of funds. Also, dealing with the planning, organizing, and controlling of financial activities like the procurement and utilization of funds.

What are types of finance?

The finance field includes three main subcategories: personal finance, corporate finance, and public (government) finance.

What is the role of finance?

Finance involves managing the firm’s money. The financial manager must decide how much money is needed and when, how best to use the available funds, and how to get the required financing. The financial manager’s responsibilities include financial planning, investing (spending money), and financing (raising money).

What is the difference between money and finance?

Money is a part of finance, but finance includes several other things as well. Money acts as a medium of exchange, store of value, a unit of account, and sometimes it can also act as a standard for deferred payments. Finance: This is the study of money and involves planning to use it.

What is finance in your own words?

Finance, of financing, is the process of raising funds or capital for any kind of expenditure. It is the process of channeling various funds in the form of credit, loans, or invested capital to those economic entities that most need them or can put them to the most productive use.

How many concepts are there in accounting?

There are nine types of accounting concepts which are as follows: Business Entity Concept. Money Measurement Concept. Dual Aspect Concept.