Question

Which of the following is an aspect of financial management?

• A. The quantum of current assets as well as its break-up into cash, inventories and receivables
• B. The size as well as the composition of fixed assets of the business
• C. The amount of long-term and short-term financing to be used
• D. All of the above

Answer 1

Answer: (D)

All of the above

The financial management aspect of planning involves accurately forecasting the company's revenues, expenses, and resulting net profit. The business owner uses the budget, sometimes called a forecast, as a tool to manage the company.

The aspects are:

1. Investment Decision

2. Financing Decision

3. Dividend Policy Decision