Financial Management and Accounting Principles

-(management accounting) the application of principles of accounting and financial management to create, protect, preserve, and increase value so as to deliver that value to stakeholders of profit note for profit enterprises both public and private.

(balance sheet) about shows the financial position at a point in time as one accounting period ends and another one starts. The main elements of the balance sheets are assets, liabilities, and equity.

(budget) is a financial plan. It can be seen as a statement of financial effect expected from the resource conversion process that the business has planned.

(globalization) - it is an extension of internationalization in the sense that most aspects of the production or service are performed and integrated across many global locations. It is also the expansion of economic activities across political boundaries of national states. It refers to the process of increasing economic integration between countries in the world economy. It is associated not only with phenomenal spread and volume of cross-which straddles national boundaries. This process is driven by the lure of profit and the threat of competition in the market.

ADVANTAGES:

1. Globalization generates wealth, goods, and services which are available to a greater percentage of the world.
2. It gives rise to economies of scale, the more you produce the cheaper it becomes.
3. Businesses are better able to seek out low-cost producers and move the manufacture of goods and the provision of services at more competitive prices.
4. It facilitates growth in communications, the internet, email, television, and satellite.

DISADVANTAGES:

1. The new technologies and access to communications may not benefit all in that they create social economic divides which cannot be met within all societies.
2. The vast majority of the world's populations may not be able to purchase these consumer goods, even at the lower prices.

FINANCIAL ACCOUNTING: - the classification and recording of the monetary transactions of an entity in accordance with established concepts, principles, accounting standards, and legal requirements and their presentation by means of profit and loss accounts, balance sheets, and cash flow statements, during and at the end of an accounting period.