Financial Information Systemby Lalit Khungar Financial Information System.
Q1. Define financial information system?
* It support financial managers regarding:-
1. Financing of a business.
2. Allocation and control of financial resources with in a business.
Q2. What are the different categories of financial information system?
* Basically there are four main categories of financial information system:-
o Cash management.
o Investment management.
o Capital budgeting.
o Financial planning.
Q3. Define the Cash management?
* Collect all cash receipts and disbursement (Real time/ periodic).
* Daily, weekly and monthly forecast.
Q4. Define Investment management?
* Excess cash is invested in short term and low risk marketable securities or in higher return/ higher risk alternatives.
Q5. Define Capital budgeting?
* It includes Long-term expenditure proposals evaluation.
* Capital budgeting evaluates profitability and financial impact of proposed capital expenditures.
Q6. Explain the Financial forecasting and planning?
* It uses spreadsheets and other financial planning software to evaluate the present and projected financial performance of a business.
* Determine financing needs of a business and analysis alternative method of financing.
Q7. Is the financial information system needs information technology?
* Yes, the financial analyst use Information technology(i.e. Internet, Extranet) to know:-
1. Economic situation.
2. Business operation.
3. Types of financing available.
4. Interest rates.
5. Stock prices.
* That helps him to develop an optimal financing plan for the business.
Q8. Define the Accounting Information System?
* Accounting information system is the oldest and widely used information system.
* Accounting information system is based on double entry book keeping concept.
* In this we done all the entry of all the business transactions.
Q9. What are the different accounting information systems that are widely used?
* The widely used accounting information system are:-
1. Order processing.
2. Inventory Control.
3. Accounts receivable.
4. Accounts Payable.
5. Payroll and
6. General ledger.
Created on Dec 31st 1969 19:00. Viewed 0 times.
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