PHYS 050 Lecture Notes - Lecture 3: Cash Flow Statement, Income Statement, Financial Analysis
Document Summary
Financial management and accounting financial resources to achieve the use of. Financial management and accounting are two closely related fields that deal with the management and recording of financial transactions of an organization. Although both fields are closely linked, they have different goals, responsibilities, and tasks. Financial management is the process of managing financial resources to meet an organization"s goals and objectives. It includes budgeting, financial planning, financial analysis, and financial reporting. The primary goal of financial management is to optimize the organization"s objectives. Financial management involves the identification of financial problems, the development of solutions, and the implementation of those solutions. Accounting, on the other hand, is the process of recording, classifying, and summarizing transactions of an organization. The main goal of accounting is to provide accurate and reliable financial information to users such as investors, creditors, and management. Accounting involves the preparation of financial statements, such as the income statement, balance sheet, and cash flow statement.
