No financial task can be performed without at least a basic understanding of the principles of financial management. By applying these principles to the reading of financial statements, it is possible to observe how an organisation has earned and spent income, and what its current financial position is. Basic principles of financial management is designed as a guide to the world of finance.

Basic principles of financial management provides an opportunity to learn the language of the financial world. It sets out the concepts and conventions of managerial finance and the main topographical features of the new territory of the statement of financial position (balance sheet), income statement and cash flow statement. The information is offered in as simple a manner as the subject matter allows. Even a layperson will glean valuable tips on how to

manage finance in terms of systems and units of administration, and thus be better equipped to understand financing and investment decisions.

Contents include the following:

• Definitions of terms
• Fundamentals of mathematical calculations
• The various types of financial statement and how to analyse them
• Working capital and cash management
• Time value of money
• Capital investment
• Risk and leverage, and breakeven analysis