Aggregate Dimensions Used In Carrying Out The Financial Balance Of The Economic Entity In Financial Vision
A Financial Analysis is directed to assess the ability of the economic entity to generate relevant cash surpluses which will ensure its financial stability and development. Financial balance can be defined by the ability of economic entity to ensure uninterrupted payment of debts previously contracted, including current debt generated by carrying out its activity, or tax law from its earnings, is so that it can avoid bankruptcy risks. Maintaining financial stability is the essential condition of an economic entity’s survival and the financial stability assessment should take into account the concrete conditions that can take one into insolvency. Moreover, equilibrium refers to a generally idea of harmony between the elements of a system, what in the financial field equals with the harmonization of financial resources with financial needs. Analysis of the financial balance can be achieved on the balance sheet based on the two concepts used for its development: asset and financial management. The study on the analysis of financial stability was performed on the example of an economic entity having as main activity the production of textiles, outlining the main indicators through which one can asses the activity of the economic entity during five consecutive financial years. Within the overall balance of the economic entity, the financial balance has an important role considering the analysis of the economic management requirements in terms of an entity’s relationship between debt and self-financing in connection with the economic entity’s training and use of funds.
Volume (Year): 10 (2010)
Issue (Month): 1(11) (June)
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