ros57395_ch01.qxd 12/21/04 2:45 PM Page 1 Part 1 The Global Financial System in Perspective Try to imagine living in a world in which there are no financial institutions‚ no financial markets‚ and no financial assets. In such a world‚ there would be no opportunity to borrow against future income in order to purchase a home or an automobile‚ or to finance an education. Nor would you be able to save some of your current income (and‚ thereby‚ accumulate wealth over time) to handle the future
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Indian Financial System - Functions of the financial system - Provision for liquidity. - Mobilizing and allocating the saving efficiently and effectively. - Monitoring the performance of the investment. Provide price related information. - Helps in the creation of financial structure that lowers cost of transaction. - Helps in the process of financial deepening and broadening. Indian Financial System Broadly divided under 2 heads - Organised - Unorganised Organised in the sense
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Financial statements‚ also known as financial reports‚ record the financial activities of a business in short and long term. The four financial statements are: balance sheet‚ income statement‚ statement of retained earnings‚ and statement of cash flows. A balance sheet reports the assets‚ liabilities‚ and net equity on a company. An income statement reports income‚ expenses‚ and profits on a company. A statement of retained earnings shows a company ’s changed retained earnings. The statement
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Inferring an organization’s performance from financial statements only; becomes difficult. Hence‚ financial ratios are used to evaluate profitability‚ liquidity‚ solvency and capital market strength. Here‚ the group has done a financial analysis of Britannia Industries Limited‚ 2011-12. PROFITABILITY RATIOS: Profitability ratios measure the degree of operating success of a company. The only reason why investors are interested in a company is that
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CHAPTER 1: INTRODUCTION TO FINANCIAL ACCOUNTING 1.1 USE‚ PREPARATION AND CONCEPTS * Use: The information derived from financial accounting is used by managers‚ investors‚ bankers‚ financial analysts and accountants‚ helping them to learn how to use information effectively and to do their jobs better. This information is essential to accountants for the services they provide. * Preparation: to be effective users of accounting information‚ people need to know something about how and
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Financial Accounting Course Objectives: This course introduces the fundamentals of financial accounting to graduate students. Throughout the course‚ communication skills will be emphasized. After completing the course‚ a student is expected to understand how accounting information is produced‚ interpret and analyze financial statements‚ communicate firms’ financial health and appreciate ethical issues in accounting. Since the course content will be approached from the perspective of a user‚ rather
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II. Assessment of Starbucks’ Financial Condition We evaluated the financial performance of Starbucks by computing various ratios based on the company’s most current audited financial statements. Specifically‚ we evaluated the firm’s liquidity‚ operating profitability‚ capital structure‚ and market value. Additionally‚ we identified Starbucks’ competitors and benchmarked the company’s performance against the peer group. Finally‚ we defined what we believe the key factors are causing the current
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A modern financial system: an overview The introduction of money and the development of local markets to trade goods were the genesis of the financial system of today. Money is a medium of exchange that facilitates transactions for goods and services. With wealth being accumulated in the form of money‚ specialised markets developed to enable the efficient transfer of funds from savers (surplus entities) to users of funds (deficit entities). A modern financial system comprises financial institutions
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stylised sense‚ there are two fundamentally different perspectives for analysis of financial systems. The institutional perspective takes the institutional structure of the financial system as given‚ and looks to define what can be done to make those institutions perform their particular financial functions more efficiently. In contrast to the institutional perspective‚ a functional approach to designing and managing financial system‚ as proposed by Professor Robert Merton (Harvard Business School) and
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Financial Globalization and Regulation Introduction: In the paper named “Financial globalization and Regulation” Philip Arestis and Santonu Basu defined a process by which financial markets of different countries are integrated as a single market and which will facilitated free movement of finance over the countries without having any restriction. This process requires a single currency and single monetary authority. Literature Review: Different scholars have researched and express their opinions
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