What is the Meaning of: Financial resources | Concept and Definition of: Financial resources
That said, the financial resources are los assets with a certain level of liquidity. Cash, credits, bank deposits, divided and possessions into shares and bonds are part of the financial resources.
Businesses generate these resources since many activities. The sale of products and services, the issuance of shares, the rounds of financing, the requested loans, and allowances are some of the sources of financial resources.
If a company has 5,000 euros in cash (cash) and a savings of 3,000 euros, its financial resources then amounted to 8,000 euros. Obviously, this is an example simplified, given that the financial reality of a business is much more complex.
Those who are responsible for the administration of financial resources must analyze and plan the correct flow of funds; Thus, problems due to the lack of resources to meet production activities or the payment of obligations are avoided. If ever the company has enough resources, this has will make liable and it will have to pay additional interest.
The budgets and balance sheets are therefore essential to know the State (or progress) financial resources because they are the reflection of the income and expenditures of the funds of the organization.