Financial Management Practice Exam

About Financial Management
Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.

Functions of Financial Management
•    Estimation of capital requirements: A finance manager has to make estimation with regards to capital requirements of the company. This will depend upon expected costs and profits and future programmes and policies of a concern. Estimations have to be made in an adequate manner which increases earning capacity of enterprise.
•    Determination of capital composition: Once the estimation has been made, the capital structure have to be decided. This involves short- term and long- term debt equity analysis. This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties.
•    Choice of sources of funds
•    Investment of funds: The finance manager has to decide to allocate funds into profitable ventures so that there is safety on investment and regular returns is possible.
•    Disposal of surplus: The net profits decision has to be made by the finance manager.
•    Management of cash: Finance manager has to make decisions with regards to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintenance of enough stock, purchase of raw materials, etc.
•    Financial controls: The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and profit control, etc.

•    Financial Management has gained immense popularity across the globe resulting in huge demand for certified professionals.

Why is Financial Management important?
This form of management is important for various reasons. Take a look at some of these reasons:
•    Helps organisations in financial planning;
•    Assists organisations in the planning and acquisition of funds;
•    Helps organisations in effectively utilising and allocating the funds received or acquired;
•    Assists organisations in making critical financial decisions;
•    Helps in improving the profitability of organisations;
•    Increases the overall value of the firms or organisations;
•    Provides economic stability;
•    Encourages employees to save money, which helps them in personal financial planning.

•    Financial Management certified professionals, executives and managers are in high demand in companies across the globe.

Important Concepts for Financial Management Practice Exam

• Financial Management Basics
• Financial Statements
• Cash Flow
• Fixed Capital Analysis
• Working Capital Analysis
• International Finance
• Financial Risk Management
  
  

Who should take the Financial Management Exam?
•    Accounting or finance professionals
•    Business owners or Entrepreneurs
•    Anyone who wants to assess their financial management skills
•    Accounting or finance managers and senior executives
•    Financial consultants
•    Professionals working in outsourced companies responsible for financial management
•    Students

Financial Management Practice Exam Objectives

Financial Management exam focuses on assessing your skills and knowledge in concepts and application of managing finances for a company.

Financial Management Practice Exam Pre-requisite

There are no prerequisites for the Financial Management exam. Candidate should be well versed  in management of finances to clear the exam.

Financial Management Certification Course Outline
1. Overview
1.1 Introduction to Financial Management
1.2 Financial Instruments: Equity Shares, Preference Shares, Right Issue
1.3 Debts: Debentures, Types of Debentures
1.4 Indian Financial System
1.5 Time Value of Money
1.6 Valuation of Bonds and Shares

2. Financial Statements
2.1 Comparative Statement
2.2 Common Size Statement
2.3 Trend Analysis
2.4 Ratio Analysis

3. Cash Flow
3.1 Fund Flow Statement
3.2 Cash Flow Statement

4. Fixed Capital Analysis
4.1 Capital Budgeting
4.2 Evaluations Techniques of Projects

5. Capital Structure and Dividend Policy
5.1 Leverage Analysis
5.2 Capital Structure
5.3 Cost of Capital
5.4 Dividend Policy

6. Working Capital Analysis
6.1 Working Capital
6.2 Receivables Management

7. Inventory Management
7.1 Introduction to Inventory Management
7.2 Tools and Techniques of Inventory Management

8. Cash Management Analysis
8.1 Cash Management
8.2 Cash Management Models

9. Foreign Exchange Orientation
9.1 International Finance
9.2 Managing of Foreign Exchange Risk
9.3 Raising Foreign Currency Finance

10. Commodity Exchange
10.1 Commodities Exchange Basics
10.2 History
10.3 Commodity Market in India
10.4 Commodity Exchange Structure
10.5 Regulatory Framework

11. Financial Risk Management
11.1 Financial Risk Basics
11.2 Financial Risk Types
11.3 Components of Risk
11.4 Financial Risk Management
11.5 Financial Risk Identification
11.6 Statistical Tools
11.7 Capital Asset Pricing Model (CAPM)

Exam Format and Information
Certification name – Financial Management Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199