items in financial statement affected by financial management decision ????? Plzz provide the answer fast.... In short points & easy language

Dear Student,
Here is your answer,
 
The financial statements such as Balance Sheet and Profit and Loss Account reflect a firms financial position and its financial health. Almost all items in the financial statements of a business are affected directly or indirectly through some financial management decisions. Which are as follows:
1.Fixed Assets:  For example, a capital budgeting decision to invest a sum of Rs. 100 crore in fixed assets would raise the size of fixed assets block by this amount.​​​​​​
2. Current Assets​​​​​​​:  
The decision regarding Cash, Inventories and Receivables is to be taken with the help of financial management that how much current assets are to be maintained.
3. Amount of long term and short term financing: With the help of Financing Decision, it is to be decided that how much fund is to be invested from which source.
4. Break-up of long term financing into debt, equity: With the help of Capital Structure Decisions, firm decides that how much proportion of debt and equity is to be maintained.
5. Interest and Dividend: As interest and dividend are the items of profit and loss account. and with the help of Dividend Decisions firm decides how much dividend is to be made and how much is to be retained.

​​​​​​​Regards.

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