Public finance deals with the management of revenue generated, costs incurred, and the debt load of the government. This type of finance is made up of all the activities associated with revenue collection, expenditures, and the financial strategies that are implemented by the government. Examples of these activities might include tax collection, budget, national debt, deficit, and surplus, etc.
Investment analysis is a term used to define the various methods and techniques used to analyze investments and economic trends. It is a process that involves evaluation and studying of past profits to forecast future performance. Investment analysis helps investors settle on a business project that is in line with their needs. It strives to predict the performance of an investment such as securities and stocks. Also, this type of analysis explains if the venture suits the investor.
Effective financial reporting help businesses track vital metrics and trends. These types of reports help stakeholders understand the financial health and performance of the business. Also, financial reports provide useful information that can help firms identify areas of opportunity and make the right decisions about the future of the business. Examples of financial reports include balance sheets, profit and loss reports, and statements of cash flows and changes in equity.
Time value of money (TVM)
The Time Value of Money notion says that the value of money depreciates with time. Meaning, the money you currently have will be worth more than the identical amount in the future. This happens because of the potential earning capacity of money. TVM is a key concept in finance and is also known as present discounted money.