Much of the analysis done by financial managers is based on numbers that are different from what would seem to be the corresponding numbers presented in the financial statements. This difference is not due to any kind of cooking the books or other attempts to mislead anyone. One example is the use of market value rather than historical cost in the valuation of assets.
For your first post, define financial management. What are some other examples of the differences between financial management and financial accounting? Give examples.
NOTE: You will come up with many examples of answering this prompt. It is ok to generalize on your definitions for financial accounting/management. In its summary form, we can say that Financial Management is a prospective or forward-looking process when the financial managers of an organization evaluate and analyze risks and chooses investment decisions to optimize the company’s performance and revenue generation with the diligent utilization of available resources. On the other hand, Financial Accounting is a retrospective or backward-looking process that identifies, accurately records, classifies, and verifies each financial transaction made by the organization to see if it is in line with the original strategic plan adopted in financial management.
