Finman Module 2 Part 1
Finman Module 2 Part 1
Understanding Financial
Statements
• help determine loan terms, loan amounts, interest rates and required
collateral
• establish credit terms and lng-term commitment to supply-chain relations
• monitor and adjust their contractual requirements and environment with a
business firm
Demand for Financial Accounting
Information
• monitor the business firm's compliance with laws, for public proection,
price setting and setting tax and other regulatory policies
Demand for Financial Accounting
Information
• required for varied purposes by other parties from assessing damages for
environmental abuses to making policy decisions involving economics,
social, taxation, and other initiatives
Sources of • Publicly-listed companies
1. Audited annual report which
Information about includes the four financial
statements
• Timeliness
• Balance Between Benefit and Cost
• Balance between qualitative characteristics
• True Fair view or fair Presentation
Financial statements
Financial statements
Financial statements
WORKING CAPITAL
• current assets are often called as working capital