The following points highlight the three main approaches to financial management. The approaches are: 1. Traditional View 2. Modern View 3. Liquidity and Profitability. Approach # 1. Traditional View: Financial management is primarily concerned with acquisition, financing and management of assets of business concern in order to maximize the wealth of the firm for its owners. The basic responsibility of [...]
The following points highlight the top two approaches to income measurement. The approaches are: 1. Transactions Approach to Income Measurement 2. Activities Approach to Income Measurement. Approach # 1. Transactions Approach to Income Measurement: The transactions approach in income measurement records changes in asset and liability valuations only as these are the result of transactions. The term transactions is used [...]
This article throws light upon the three approaches by a management auditor. The approaches are: 1. Cash Forecasting 2. Cash Budgeting 3. Cash Planning. Management Auditor: Approach # 1. Cash Forecasting: (1) The methods adopted for forecasting cash. (2) The determining factors considered for expected payments and receipts for a chosen period. (3) The extent of any seasonal or intermittent [...]