Finance and accurding factors

Finance is concerning with acquisition,utilization and distribution of financial resources.Financial strengths and weaknesses are analysed in terms of the following capability factors :

• Strong financial performance.Availability of funds for growth.
• Access to financial resources;short term and long term;debt and equity.
• Amicable relationship with financial institutions.
• High level of credit worthiness,high credit rating.
• Efficient capital budgeting system and cost control system.
• Low cost of capital compared to competitors.
• High level of shareholder's confidence.
• High price earning ratio;consistency in dividend payout.
• Effective financial control system.
• Tax benefits due to various government policies and planing.
• Accounting system:recording,analysis,interpretation ,computerization.
• Profit planing and control.