A finance is a term which is closely related to accounting. Finance is concerned with all the activities that are related to monetary terms. In short, all the transactions that are related to money is known as finance. Any kind of business is dependent upon finance. So, finance is termed as the lifeblood of every business. No matters, what is the size of business, every business needs finance to run smoothly. The business activities are related to earning the profit. Finance may be called as the capital, investment, fund etc., but each term of finance has different meaning and special characters. It may be defined as the art and science of managing money. Studying and understanding the concept of finance has become the important part of the business concern. Finance is of two types, private financed and public finance. Private finance, are those which includes the individuals, firms, business or corporate financial activities to meet the requirements. Public finance is concerned with revenue and expenditure of government. A person who deals with finance is known as finance manager. The finance manager performs many functions, such as forecasting financial requirements, acquiring necessary capital, for making an investment decision, cash management, etc. Finance has become the essential subject to be studied for accounting students, for creating understanding about finance and its functions. Students suffer many challenges in understanding finance. They have the least knowledge about the financial functions, importance, need of finance, terminologies included in finance, the concept of finance, etc. Apart from these problems they encounter the problem of interest. Students are not interested in understanding the concepts of finance which as a result leads to failure. Sometimes, the problem arises of correlating the theoretical terminologies to practical outcomes. They are unable to solve the practical problems of finance due to lack of knowledge about the concept.
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