ACC501 – Business Finance is a crucial course offered by Virtual University (VU) that provides students with a comprehensive understanding of financial principles in a business setting. The handouts for this course are structured to ensure clarity, covering all the essential topics needed for mastering the subject.
What Do ACC501 Handouts Cover?
1. Introduction to Business Finance
- The role of finance in business operations.
- Financial decision-making processes and objectives.
- Understanding different financial markets and institutions.
2. Time Value of Money (TVM)
- Importance of TVM in financial planning.
- Key Present Value (PV) and Future Value (FV) formulas.
- Practical applications in loans, investments, and savings.
3. Financial Analysis and Planning
- Overview of financial statements: Income, Balance Sheet, and Cash Flow Statement.
- Financial ratio analysis for performance evaluation.
- Short-term and long-term financial planning strategies.
4. Investment Appraisal Techniques
- Capital budgeting tools:
- Net Present Value (NPV).
- Payback Period.
- Internal Rate of Return (IRR).
- Decision-making based on investment evaluations.
5. Risk and Return
- Basics of measuring risk and expected return.
- The concept of diversification and portfolio management.
- Understanding the relationship between risk and return.
6. Cost of Capital and Capital Structure
- Factors influencing an organization’s capital structure.
- The impact of financial leverage on profitability.
7. Working Capital Management
- Managing current assets and liabilities effectively.
- Techniques for inventory, receivables, and cash management.
- Strategies for ensuring liquidity in business operations.