1. Financial Management
Accounting Concepts

2. Accounting Concepts Business entity Dual aspect concept (Double entry)
Money Measurement
Objectivity concept Only recorded financial transactions are considered
Going Concern
Periodicity concept (reporting on Accounting periods)
Cost Concept (Historical cost value)
Conservatism concept
Materiality Concept (Full disclosure of all relevant information)
Realisation concept
Matching concept
Full disclosure (All relevant known future events that may or will have an impact must be disclosed)

3. Managing finance Investment decisions Financing decisions
Large capital expenditure (renovation,refurbishment,expansion)
Mergers and acquisitions
Management of working capital
Financing decisions
Capital Structure
Dividend policy
Purchase of new equipment(lease purchase)
Risk management (Long term pricing agreements)
Financial planning and tax minimisation
Management decisions
Performance measurement
Budgets
Operating and capital expenditure

4. Financial Accounting and Management Accounting
Is concerned principally with information prepared for distribution to stakeholders outside the business. Includes Balance sheets and Income statements for current period and also for previous periods for comparison and evaluation.
Management Accounting
Is concerned with the information needs of managers within the business. Includes cost control, budgeting, variance analysis, pricing and cost-volume-profit analysis.

5. Ratio Analysis Ratio analysis is analysis of the relationship between
particular items in a financial statement. Assists in
spotting trends and problem areas that might be arising.
Can be used as comparison tool to similar businesses.
Overall performance
Profitability
Turnover
Liquidity
Solvency
leverage

6. Ratio Analysis

7. Ratios Return on Investment Return on Total assets Gross profit Ratio
Net Profit Ratio
Inventory Turnover Ratio
Debtors Turnover Ratio
Working capital turnover ratio
Current Ratio
Quick ratio
Solvency ratio
Debt to assets ratio
Debt to equity ratio
Number of times interest covered ratio
Labour cost analysis rations
Labour cost per cover
Covers per labour hour
Minutes per occupied room