December 8, 2021

FACTORS THAT AFFECT THE CHOICE OF FINANCE The choice of the source of finance depends upon a number of factors which includes: Cost: There are two types of cost, the cost of procurement of funds and the cost of utilizing the funds. Both these costs should be taken into account while deciding about the source […]

FIRMS SOURCES OF FINANCE Sources are determined by how much you need and when you need START UP STAGE Here one needs external sources of funds.one needs seed money e.g. advertisement Personal sources/savings Savings accumulated Borrowing secured by collateral Loan against life insurance policy. Informal venture capital These funds are provided by wealthy investors/business angels

NATURE OF ACCOUNTING Accounting is defined as the process of identifying, measuring and reporting economic information to the users of this information to permit informed judgment Many businesses carry out transactions. Some of these transactions have a financial implication i.e. either cash is received or paid out. Examples of these transactions include selling goods, buying

FINANCIAL STATEMENT ANALYSIS Financial Analysis Financial analysis is a process by which an accountant or finance manager or any other interested party identifies the financial strength or position of a company by comparing the relationship between items in the balance sheet and those in the profit and loss account. Thus financial analysis is of paramount

FINANCIAL SYSTEM IN PERSPECTIVE Introduction Saunders and Cornett (2001) define financial markets as structures through which funds flow. This definition off course encompasses both financial institutions (FIs) and capital markets as structures through which funds flow. Financial markets can be distinguished along two major dimensions 1.Primary markets Vs Secondary markets a)primary markets This are markets