Summary MAC3702 Exam Revision Slides

APPLICATION OF FINANCIAL
MANAGEMENT TECHNIQUES

,STUDY UNIT 1 – ADVANCED ANALYSIS OF INFORMATION
 IN THIS STUDY UNIT WE WILL BE EXPANDING ON
THE RATIO ANALYSIS CONCEPTS WE COVERED IN
MAC 2602
 CHAPTERS 1, 2 AND 8 OF TEXTBOOK
 MOST OF THE SAME RATIOS WILL STILL BE
EXAMINABLE BUT WE WILL BE LEARNING SOME NEW
RATIOS
 IMPORTANT: ADJUSTMENTS TO MAKE BEFORE STARTING
RATIOS
 UNUSUAL ITEMS
 INTANGIBLE AND FICTICIOUS ASSETS
 OTHER – E.G. POST BALANCE SHEET EVENTS, OUTSTANDING
JOURNALS

,OBJECTIVES AND SOURCES OF FINANCIAL
ANALYSIS
 THE OBJECTIVES OF FINANCIAL ANALYSIS
 THE USERS OF FINANCIAL INFORMATION AND
ANALYSIS
 SOURCES OF INFORMATION REGARDING AN
ORGANISATION
 THE MAIN LIMITATIONS OF FINANCIAL
INFORMATION
 TECHNIQUES USED IN PERFORMING FINANCIAL
ANALYSIS

, THE OBJECTIVES OF FINANCIAL
ANALYSIS
 THREE MAIN OBJECTIVES
 AN EVALUATION OF AN ORGANISATION’S
PROSPECTS FOR THE FUTURE
 TO EVALUATE THE PERFORMANCE OF AN
ORGANISATION’S MANAGEMENT VIA ANALYSIS OF
THE FINANCIAL STATEMENTS
 FOR INTERNAL DECISION MAKING E.G. INVESTING,
CASH MANAGEMENT