Day: March 7, 2022

When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging in international finance include foreign exchange risk and political risk. These Read More …

Due to current changes brought by globalization and trade liberalization, international finance is useful because it helps to: 1. Understand the consumption pattern of a particular economy 2. Understand where and how to invest 3. Understand the production

International finance (also referred to as international monetary economics or international macroeconomics) is the branch of financial economics broadly concerned with monetary and macroeconomic interrelations between two or more countries. International finance examines the dynamics of the global financial system, Read More …

1. Ratios are computed at a specific point in time. 2. Ratios ignore the effect of inflation in performance which is a vital part in the daily business management 3. The comparison between firms is often done even for firms Read More …

1. for evaluating the ability of the firm to meet its short term financial obligation as and when they fall due 2. To interpret the performance of the firm over the period covered by the financial statements. 3. For comparison Read More …

Financial analysis is the process or critically examining in detail, accounting information given in financial statements and reports. It is a process of evaluating relationship between component parts of financial statements to obtain a better understanding of a firm’s performance. Read More …

The evaluation of an applicant begins when he fills a form providing basic financial and credit data and references. Additional information will be obtained from other sources depending on time and expense and size of credit involved. The credit analyst Read More …

Account Receivables are amounts of money owed to a firm by customers who have bought goods and services on credit. Management of receivables aims at determining the optimal level of investment in receivables, which maximizes the benefits and minimizes the Read More …

The finance manager must be wary of two polar extremes in working capital management. These extremes are, over-capitalization and, over-trading. 1. Over Capitalization (Conservative Financing Strategy) If a company manages its working capital, so that there are excessive stocks, debtors Read More …

There are three types of inventory: • raw material • work-in-progress • Finished goods. These are 4 types of costs associated with inventory management: Holding (carrying) cost Ordering cost Purchase cost Stock out costs Holding Costs These include warehousing costs, Read More …