Wealth maximization is better than profit maximization as a goal of financial manager.

Company use Balance Sheet to measure company’s financial performance and Income Statement to measure company’s financial position.

Most accountants will take direction from company's executives even some accounting principles are not followed.

Revenue - Cost of Good Sole = Earning Before Tax

The person who responsible for planning and managing a company's financial resources known as the Chief Financial Officer (CFO)?

Company’s financial statement including, balance sheet, income statement, cash flow statement, retained earning statement and also source and use of fund statement.

Is cash generated in a business come from operating activities, financing activities, or investing activities?

The objective of using Leverage Ratio is to measure how effective the company in using their asset and liabilities in generate sale.

Risk and Return has positive relationship where the higher the risk indicate higher return for a company.

Trend analysis is used to evaluate company or firms for a particular period while Cross Sectional is used to evaluate two or more companies for a particular period.

Among the important ratios that creditor will consider the most when evaluating the company is Activity Ratio.

Accounts payable, accruals, notes payable and other non current liabilities are example of Current Liabilities.

Building, plants, equipment and machines and other fixed assets are example of Non Current Assets or Fixed Asset.

Balance Sheet is a snapshot of the firm’s assets and

liabilities at any given point of time.

Reasons the company holding cash are for day to day transaction, unpredictable cash flow and for any bargains that may arise.

Investment decision and financing decision are among the functions of Company Manager.

Financial manager responsible for the firm overall risk management program including identifying the risk that should be hedged and hedging them in the most efficient manner.

Cross sectional Analysis compares the ratio of the firm

to the industry norms or other individual firms in the same industry. Example Proton compare its financial ratios with it near competitor such as Honda.

Net Fixed Assets, Long Term Debt , Notes Payable and Equity are items that should be remain unchanged if company operate at full capacity.

The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control.

Investment decision not only involves allocating capital to long term assets but also involves decisions of using funds which are obtained by buying those assets which become less profitable and less productive.

There are some non-cash expenses that are not contained in cash budgets because they do not entail a cash outlay, for example, bad debts and depreciation

In finance, return refers to the degree of uncertainty and/or potential financial loss inherent in an investment decision.

Among the financial risk that you may encounter in making financial decision are market risk, credit risk, operational risk, liquidity risk, political risk and reputational risk.

Net working Capital = Total Current Assest - Total Current Liabilities

A stakeholder owns the shares of the company. A stockholder is a member of group that has interest in the company's business for multiple reasons.

Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts.

Spontaneous items are items that will change according to sales while non spontaneous items are items that remain constant even there are changes in sales activity.

Among the advantages of Sole Proprietorship organization are easy to set up, flexible working hours and limited liability.