Important Points for IC 89 - Management Accounting Exam
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Financiaing decisions relate to acquiring optimum fund to finance various fixed assets and working capital keeping in view the expected returns and required solvency, liquidity, profitability and growth.
Dividend decisions determine as to when and how much profits of the organisation can be distributed as dividend to shareholders.
Time value of money means that worth or value of a rupee received today is different from the worth of a rupee to be received in future.
The preference of money at present as compared to future money is known as time preference for money.
Procurement of funds decision is very critical one as it requires consideration of lot many factors such as sources of funds, terms and conditions of repayment, cost of capital and control.
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