Managerial Finance Essay Example | Topics and Well Written Essays - 1500 words

Managerial Finance - Essay Example Managerial accounting is in general used by the management team of the company for translating the trends and signals available from the financial information. Different levels of managers often use this information in a somewhat different manner in their own wisdom. The information is often used for Break even analysis, Measuring and evaluating the monthly, quarterly or annual performances or Preparing the targets for production and services.Managerial accounting is in general used by the management team for translating the trends and signals available from the financial information. Different levels of managers often use this information in a somewhat different manner in their own wisdom. The information is often used for Break even analysis, Measuring and evaluating the monthly, quarterly or annual performances or Preparing the targets for production and services.Financial This type of accounting gives an idea to people from outside the company as well as stakeholders from within the company to arrive at a decision regarding their decision to continue with the company or look for a better opportunity. Financial accounting provides information like;ï‚ § Profit and loss figures for the company over a financial year or select period of timeï‚ § Reserves and surpluses being maintained by the companyï‚ § Dividend payouts by the company in the recent pastï‚ § Nature of funding for the company e.g. debt or equityï‚ § Proportion of dependence on finances from outside the company’s own reservesï‚ § Number of stakeholders in the business.... Financial Accounting: This type of accounting gives an idea to people from outside the company as well as stakeholders from within the company to arrive at a decision regarding their decision to continue with the company or look for a better opportunity. Financial accounting provides information like; Profit and loss figures for the company over a financial year or select period of time Reserves and surpluses being maintained by the company Dividend payouts by the company in the recent past Nature of funding for the company e.g. debt or equity Proportion of dependence on finances from outside the company's own reserves Number of stakeholders in the business Operating ratios for assessing the financial health of the company Adherence to the Generally Accepted Accounting Principles (GAAP) Number and types of external reports generated Judicious plans of the company for disbursing the profits Such information helps investors in looking for long-term or short-term targets for the investments being done in the ABX Company. It is worthwhile here to mention that individual shareholders, banking and financial institutions keep watch on the figures being communicated by the company from time to time. While on the one hand for an individual investor the dividend payouts and the price of the share in the stock market holds the key, the banking and financial institutions keep a close watch on a range of figures like operating ratios, profit margins, PE ratios etc. Therefore, even the dividend payouts and higher prices of company's share on the stock exchanges may not be attractive enough for the banks and financial institutions to advance finances for expansion and diversification. The financial accountant helps in preparing all such reports for the outside to