Module 4 - Financial


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Financial : Financial accounts are concerned with classifying, measuring and recording the transactions of a business. At the end of a period (typically a year).

Financials are based on basic three rules as follows :-

1. Real Account - Debit what Comes In and Credit what Goes Out.

2. Nominal Account - Debit all Expenses/ Losses and Credit all Profit/ Gains.

3. Personal Account - Debit the Receiver and Credit the Giver.

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Financial Accounting :-

The "measurement" of accounting information is not a straight-forward process.It involves making judgements about the value of assets owned by a business or liabilities owed by a business.

It is also about accurately measuring how much profit or loss has been made by a business in a particular period.

Taking a commercial business as the most common organizational structure, the key objectives of financial management would be to:


Create wealth for the business.


Generate cash, and


Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested.

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