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Financial Managment Course Project Topic - Essay Example

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This is observed that in practical business field financial theories play an important role to maintain a discipline while company records their financial transactions. When a company uses financial theories then it…

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Financial Managment Course Project Topic

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Subject: Finance & Accounting
Type: Essay
Level: Masters
Pages: 1 (250 words)
Downloads: 2
Author: yromaguera

Extract of sample "Financial Managment Course Project Topic"

Financial Management Project Topic Motivational Factors Financial theory is the selected topic for this research study. This is observed that in practical business field financial theories play an important role to maintain a discipline while company records their financial transactions. When a company uses financial theories then it can predict the future situation of business in a proper and structured way. Again company can explain its accounting recording procedure to the external parties such as external auditors, stake holders etc (Carmichael and Graham, 2012).

Theories may be described in two ways. Those are normative and positive. In normative way company can explain what should do for maintain accounts and finance in an accurate way and in positive way company can explain that what they are doing at present for maintain financial records. These theories help to make economic decision in the business. Financial theories provide a set of principles and focus on certain relationships which explain observed practices and these theories are also able to highlight the unobserved practices also.

These theories also help to focus on an important factor and that is the procedure which a company is applying to utilize its financial resources (Kimmel, Weygandt and Kieso, 2010). If all the financial resources are not utilized properly or these resources are not utilized for the purpose of business then the business owner can get information by applying proper financial theories. Financial statements are main parts in any company to maintain the financial and accounting records. These statements are prepared by using relevant financial theories.

Above mentioned reasons are the motivational factors for doing such practices in every organization (Banerjee, 2009).ReferencesBanerjee, A. (2009). Financial Accounting. New Delhi: Excel Books India.Carmichael, D. and Graham, L. (2012). Accountants Handbook, Financial Accounting and General Topics. Beijing: John Wiley & Sons.Kimmel, P., Weygandt, J. and Kieso, D. (2010). Financial Accounting: Tools for Business Decision Making. Beijing: John Wiley & Sons.

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