Reflection On Principle Of Finance

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In this semester, I have learned many knowledge from this subject called Principle of Finance. This is the first semester of my Degree so it’s also the first time I get to know this subject. It’s quite challenging for me as I don’t know much about financing and honestly I’m still not very clear what have I learned in this semester. Financial management means how to manage and utilization of funds to accomplish the company goals efficiently and effectively. Malaysia financial system divided into 3 parts, which are banking system, non-banking financial intermediaries, and financial markets. There are 4 financial market in Malaysia which are money market, capital market, derivatives market, and forex market. Money market is a short-term instruments,…show more content…
Let’s start with life insurance companies, it is insure against death, receive funds in form of premiums, it’s also long-term corporate bonds and commercial mortgages. Pension and retirement funds is invest mainly in long-term corporate bonds and high-grade stock. Mutual funds is a stock or bond market related institutions, it invest in wide variety of securities to minimize the risk. Money market mutual funds is a funds invests in highly liquid short-term money market instruments like treasury bills and high-grade commercial paper. The savings and loan associations (S&L’S) is a traditionally acquired funds through savings deposits, and it used funds to make home mortgage loans. The commercial and consumer finance companies is acquire funds primarily by selling short term loans and it loan cash for consumer purchases or business firm to finance inventories. The property and casualty insurance companies insure homeowners and businesses against losses. Lastly, the credit unions organized as cooperatives for people with common…show more content…
The reason we learn the basis of accounting because both accounting and financing are related, it does help us in our future workplace. We just learn the basis of accounting in this semester because this is our first semester, we will learn more accounting in following semester. We learned the few basis accounting equation such as asset, owner’s equity and liabilities. Balance sheet as known as the statement of financial position, creditors and investors use the balance sheets to tell the organization financial situation because it list everything the organization owns and owe. When there are misunderstanding between creditor and investors, they can check everything from the balance sheet to avoid unnecessary misunderstanding. Income statement as known as profit and loss statements, it is a summary of the company’s profitability and loss in a periods, usually summarize monthly. With income statement, the owner of the organization can know how much profit or loss the company make in a month very easily and detail. Cash flow statement is the statement that tell us the cash inflow and cash outflows, how much we use and how much we earn. The cash flow statement involved in four activities, which are operating activities, investing activities, financing activities, and supplemental

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