Chapter 18 What is finance? ●Finance is the function in a business that acquires funds for the firm and manages them within the firm -Preparing budgets, cash flow analysis, planning for the expenditure of funds for assets ●Financial management is the job of managing a firm's resources so it can meet its goals and objectives. ●Financial managers examine data prepared by accountants and recommend strategies to improve the financial performance of the firm. Three reasons firms fail financially 1.Undercapitalization 2.Poor control over cash flow 3.Inadequate expense control Financial planning: optimizing the firms profitability and making the best use out of its money 1.Forecasting short term and long term financial needs 2.Developing budgets to meet those needs 3.Establishing financial controls to see if the company is achieving its goals ●Budget: A financial plan that sets forth management's expectations, and, on the basis of those expectations, allocates the use of specific resources throughout the firm. -Capital budgets: spending plans for major asset purchases that often require large sums of money. -Cash budget: estimates cash inflows and outflows during a particular period like a month or a quarter. -operating/master budget: The budget that ties together the firm's other budgets and summarizes its proposed financial activities. ●Financial control: A process in which a firm periodically compares its actual revenues, costs, and expenses with its budget. ●Capital expenditures: Major investments in either tangible long-term assets such as land, buildings, and equipment or intangible assets such as patents, trademarks, and copyrights. ●Debt financing: Funds raised through various forms of borrowing that must be repaid. ●Equity financing: Money raised from within the firm, from operations or through the sale of ownership in the firm (stock or venture capital).
Chapter 18 (pdf) - Course Sidekick (2024)
Top Articles
Section 179 Deduction Vehicle List 2023 - Mercedes-Benz of Littleton Blog
How to Tell If Your Spouse Is Lying
MTB > Name C11 'Fresh' C12 'Stored' # Puts Names Atop C11 and C12 in the Worksheet
7.4 Sum-to-Product and Product-to-Sum Formulas - Precalculus 2e | OpenStax
Dead Space Remake im Technik-Test: Schnetzeln und Zittern in Pracht-Optik [Update]
All Changes, Differences, and New Features | Dead Space Remake (2023)|Game8
Best Places To Eat In Winter Park Fl
Grand Park Baseball Tournaments
Hurricane Beryl, a Category 3 Storm, Smashes Jamaica and Speeds Toward Mexico
The Academy Museum Names Paul Mescal, Rita Moreno and Quentin Tarantino as 2024 Gala Honorees
Transfer latest: Rice to complete £105m Arsenal move; Spurs meet with Bayern over Kane
Rice price rockets as Arsenal transfer announcement delayed amid Kroenke plan
Latest Posts
Can you take money out of a savings account? Pros, cons, and ways to withdraw
What is a Cash Flow Statement? | Example of Cash Flow Statement - Zoho Books
Article information
Author: Rubie Ullrich
Last Updated:
Views: 5419
Rating: 4.1 / 5 (72 voted)
Reviews: 95% of readers found this page helpful
Author information
Name: Rubie Ullrich
Birthday: 1998-02-02
Address: 743 Stoltenberg Center, Genovevaville, NJ 59925-3119
Phone: +2202978377583
Job: Administration Engineer
Hobby: Surfing, Sailing, Listening to music, Web surfing, Kitesurfing, Geocaching, Backpacking
Introduction: My name is Rubie Ullrich, I am a enthusiastic, perfect, tender, vivacious, talented, famous, delightful person who loves writing and wants to share my knowledge and understanding with you.