Which of the following is not an objective of financial planning? Find the Answer at BYJU'S (2024)

FAQs

Which of the following is not an objective of financial planning? Find the Answer at BYJU'S? ›

Ensuring excess availability of funds at the right time is not an objective of financial planning.

Financial planning is the process of creating a roadmap for managing your finances to meet life goals. It involves setting objectives, assessing assets and liabilities, planning for future financial needs, and managing risks.

The correct option is (C) Provide information on the liquidation value of an enterprise. While liquidation is one of the factors that can be deduced from financial reports, it does not stand out as one of the main objectives of financial reporting.

Some of the key elements of the financial plan are budgeting, insurance coverage, tax planning, debt management, long-term savings, etc. What is the objective of a financial plan? The objective of a financial plan is to provide a roadmap to manage your financial resources to achieve your financial goals in future.

If all you get is a portfolio review, that's not financial planning. If all you get is an insurance analysis, that's not financial planning. If all you get is a retirement assessment, that's not financial planning.

Step 4. Develop a Comprehensive Financial Plan. Proceeding forward, the subsequent step in the financial planning process entails crafting a comprehensive financial plan. This plan should encompass a wide spectrum of both short-term and long-term goals and objectives.

Financial Planning for Individuals & Families

For individuals and families, we focus on asset/liability matching, tax-efficiency, and cost-effective planning throughout the four key phases of financial management: accumulation, distribution, preservation, and legacy. Plan to budget, determine investments, set goals.

Ensuring excess availability of funds at the right time is not an objective of financial planning.

The financial plan portrays all of the activities, assets, machinery, and materials that are required to accomplish these targets, within a stipulated time frame. Cost is not a feature of financial planning as the plan deals with determining the cash flow of the organisation.

However, manipulating financial information to deceive stakeholders or evade taxes is not an objective of accounting. It is crucial to uphold ethical standards and ensure the integrity of financial information for the benefit of all stakeholders.

What are the three objectives of financial management? ›

Financial planning involves looking at a client's entire financial picture and advising them on how to achieve their short- and long-term financial goals.

Planning, budgeting and forecasting are three key steps that can help determine and strategise a company's short and the long financial objectives.

The correct answer is D) APR. APR stands for Annual Percentage Rate, which is a measure of the cost of borrowing money. The other options, A) PMT, B) PPMT, and C) NPD, are all financial functions commonly used in finance and accounting.

El Nino effect refers to the climate cycle in the Pacific Ocean. It is the warm phase which occurs due to southern oscillation. to It is a natural phenomenon. Thus, it is not a financial term.

We at FundWell believe that business owners should take a holistic and proactive approach to their financial wellness. This includes strategic and tactical steps to continually evaluate and improve four key financial indicators: cash flow, credit, customers, and collateral. We call these indicators the 4 C's.

Most financial management plans will break them down into four elements commonly recognised in financial management. These four elements are planning, controlling, organising & directing, and decision making.

Finance experts advise that individual finance planning should be guided by three principles: prioritizing, appraisal and restraint. Understanding these concepts is the key to putting your personal finances on track.