The world of finance is fraught with difficulties for the uninitiated. A quagmire for the men and women, with little understanding of the way through the quick sands of finance. The epithet 'Abandon Hope, All ye who enter' fits. But hope is at hand for the non-finance professionals.
Finance Sense demystifies the world of finance and accounting. It explains the basics of finance and accounting in a simple and lucid manner. Divided into five parts, the book covers key areas of finance and accounting.
Part One provides a firm grounding in financial statements (balance sheet, and profit and loss statement), financial accounting, and financial statement analysis.
Part Two presents the key concepts, tools and systems of cost and management accounting like product costing methods, standard costing, activity based costing, budgeting, break-even analysis, and differential analysis.
Part Three focuses on strategic issues like capital budgeting and long-term financing which have a significant bearing on the performance of a firm in the long run.
Part Four covers the vital area of working capital management in which almost all executives participate in some way or the other on a continual basis. The topics include cash and liquidity management, receivables (debtors) management, inventory management, and working capital financing.
Part Five explores certain special topics and contemporary issues like strategic planning and management control, international finance, financial services, and corporate restructuring.
The second edition of the book dwells on contemporary topics like:
Cash Flow statement Risk analysis Activity based costing Total cost management Economic value added (EVA) Do's and don'ts of budgeting Balance scorecard Portfolio restructuring Value of options Company valuation
Corporate governance Corporate advisory services
Investor communication Securitisation Different analysis Equity valuation A new chapter on 'Strategic Planning and Management Control Integrated and cohesive treatment of three keys areas of finance, viz., CAPITAL BUDGETING, BUSINESS FINANCING, AND MANAGEMENT OF CURRENT ASSETS.
Finance Sense will equip the uninitiated to stand tall in the world of finance.