Page 25 - Spotlight A+ Form 4 & 5 Mathematics KSSM

Form
Chapter 10 Consumer Mathematics: Financial Management Mathematics 4

10.1 Financial Planning and Example 1
Management Match each of the following.

Describe effective financial management Pay car installment for every
process month.
1. Financial planning is a process of evaluating Give six months salary as Needs
the current and future financial status of an yearly bonus.
individual or organisation by using the sources
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of incomes and expenditures to determine the Provide lunch to all workers. Wants
cash flow, asset value and financial plan of the
future.
2. Financial management is a process involving Buy personal Takaful
insurance.
the use of sources of incomes and assets on
the expenditures, savings, investments and Solution:
protection to fulfil the financial goals of an
individual or organisation. Pay car installment for every
month.
3. The process of financial management involves
five main steps. Give six months salary as
yearly bonus. Needs
Setting financial
1 goals Provide lunch to all workers. Wants
5
Evaluating financial status Financial progress Buy personal Takaful
insurance.
Review and
revising the
process
2 management Try question 1 in Formative Zone 10.1
(b) Evaluating financial status.
4 • The current financial status can be
Carrying out determined based on cash flow statement CHAP.
and net asset value statement.
Creating
3 financial plan • The cash flow statement gives information 10
financial plan
on how the sources of incomes are
acquired and spent.
(a) Setting financial goals.
• The financial goal is usually set at the BRILLIANT Tips
beginning of a year.
• When setting a financial goal, all Positive cash flow occurs when the total incomes is
expenditures have to be given priority to exceeding the total expenditures whereas negative
needs than wants. cash flow occurs when the total incomes is less than
• Financial goals are categorised as short- the total expenditures.
term (less than one year), medium-term Total Positive
(one year up to five years) and long-term incomes cash flow
(more than five years). . total
expenditures
Cash flow
Total
incomes
, total Negative
expenditures cash flow

10.1.1 209

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