1.1: Financial Data, Objectivity and the Validity of Data
Financial data is an important element that companies should work on as this data provides the past, current and also the future performance of the companies. The accounting and financial statements are the most important tools for decision making in an organization, as well as information for the health of these, and also for evaluating alleged investors and the investors themselves, when dealing with public company. Historically, economic and financial analysis has always been linked to need to identify the strength and performance of companies. Moreover, management is universal, as necessary, as a discipline, as a process, as a set of techniques and tools that are needed to study with all seriousness and depth. They are the political, economic, social and cultural rights that determine Management arrangements in general, but are the business problems which require practical solutions to the different events around the new era of globalization such as the Free Trade Technological Trends, among others, since that dimension need arises for Administration (Gowthorpe, 2008).
One of the main activities within the asset management for sure is the closing balance sheet. The main function of the balance sheet is to provide an accurate picture of the accounting and financial position of the company within a certain period (generally the balance is made ??over the period of 1 year). The balance sheet is considered one of the main financial statements of a company and must be produced accurately. It can be inferred that the objectives of management accounting are delivered to senior executives of the company information as a necessary tool for proper and wise decisions that will achieve the goals, objectives and missions of their responsibility, as well as control responsibilities of their staff in achieving the objectives of the company and make the necessary corrections in a timely manner (Rhys, 1930). Philosophy of Management for obtaining financial data consists of five basic elements which are:
Efficiency, which is the proper use of company resources.
The effectiveness, which is to successfully achieve the objectives of the company.
Low running costs, the objective is to obtain the lowest possible cost for the benefit of the utility and profitability.
Managerial control, which aims to ensure that resources are obtained and used effectively and efficiently to achieve the objectives of the organization.
Strategic planning, which are well-coordinated joint action programs aimed at ensuring a sustainable advantage in the long run. It applies to business managers for formulating and implementing strategic plans and actions that are consistent with corporate guidelines and in compliance with the budget allocated to the particular unit of the organization (Libby, et.al, 2011).
1.2: Tools and Techniques to Analyze Financial Performance
Financial analysis is a practice oriented education in business valuation and business analysis for those who want to deepen your knowledge in financial analysis. This is an intensive way with a clear practical focus which includes the following elements: