Financial forecasting, Finance Basics

Assignment Help:

Financial Forecasting

Financial forecasting refers to determination of the firm of financial requirements in advance. Financial forecasting is needs financial planning using budgets.

The financial forecasting and planning will determined also the firm the activities should undertake in order to achieve its financial targets.

Financial forecasting is significant in the following ways like:

1. Facilitate financial planning that is determination of cash surplus or deficit such are likely to happen in future.

2. Facilitate control of expenditure.  This will minimize wastage of financial resources in order to get financial targets.

3. It avoids surprise to the manager's as any cash deficit is identified well in advance so the firm can plan for sources of short term funds that as bank drafts or short term loans.

4. Motivation to the staff - Financial forecasting using targets and budgets will enhance unity of purpose and objectives among staff that are determined to achieve the set target.


Related Discussions:- Financial forecasting

Functions of the financial markets, Functions of the Financial Markets ...

Functions of the Financial Markets Functions of the Financial Markets or Institutions in Economy 1. Allocation of financial resources to the mainly productive units. Saving

Partnership deeds, Partnership Deeds This is an important document whic...

Partnership Deeds This is an important document which governs the members in partnership firm. It covers among other things the following points:      i. The name, location,

Explain about the functions of financial systems, Explain about the functio...

Explain about the functions of financial systems. Financial systems perform the necessary economic function of channelling funds through units who have stored surplus funds to

Discuss possible reasons for the merger , Investigate a recent company merg...

Investigate a recent company merger or take-over and: i)  Critically evaluate the means by which managers may determine the bid price in such acquisitions. (You should use the b

Explain the term - giving margin money to broker, Explain the Giving Margi...

Explain the Giving Margin Money to Broker Marin  is  the  amount  of  money  which is provided  by customer to the brokers who have agreed to trade their securities. It may

Dow theory - stock exchange, Dow Theory - Stock Exchange This theory d...

Dow Theory - Stock Exchange This theory depends upon profiting of prices of a chart of secondary movement. The principal objective is to discover whilst there is a change in t

Calculate interest rate, Imagine Joy is the manager of a bank named Money ...

Imagine Joy is the manager of a bank named Money Talks Bank of Virginia . This bank has recently issued new loans to customers. Joy wants you, the business analyst to prepare a re

Calculate total number of ordinary shares, Calculate total number of ordina...

Calculate total number of ordinary shares Example Company XYZ Ltd has sold 10,000 ordinary shares of Shs.30 as partly called up plus 20,000 Shs.45 preference shares, tha

Annual percentage rate, A current radio advertisement states that the avera...

A current radio advertisement states that the average American household has an average credit card debt of $25,000. Based on an APR (Annual Percentage Rate) of 18% (common for cre

Merchant banks - banking institution, Merchant Banks - Banking Institution ...

Merchant Banks - Banking Institution Merchant Banks begun life as merchants and begun to control in financial firms, during the 19 th Century . The merchant banks act like a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd