Role
Define solvency
The long-term indication of investment risk for shareholders.
List one type of government influence on financial management
ASIC (Australian Securities and Investment Commission) or Company taxation
What is an example of monitoring and controlling
Cash flow statement, income statement or balance sheet
What do cash flow statements record
When cash inflows and outflows typically occur.
What is cash
Cash is king 👑
What is the strategic role of finance?
To make sure funds are available for business activities
Define economic outlook
Refers to the projected changes in the future on global economic growth
What is the liquidity ratio?
Define hedging
Reducing risk associated with commercial transactions (waiting).
What is the efficiency ratio
Total expenses divided by sales
How does finance interdepend with marketing
They provide marketing with a budget to undertake tasks and marketing raises revenue for finance
What is the type of long-term loan from investors with a fixed interest and time period?
Debentures
What does the debt-to-equity ratio measure
Gearing
What is an option of raising capital by selling an asset the business owns and then leasing it back from the buyer?
Sale and lease back
What is the biggest promotion in McDonalds?
Maccas Monopoly
List the two types of short-term goals
Operational (day to day) and Tactical (1 - 2 years)
List the three types of short-term borrowing
Overdraft, commercial bills and factoring
List three of the five planning and implementing strategies
Financial needs, budgets, record systems, financial risks, financial controls
List the three ways to control current liabilities
Payables, loans and overdrafts
What was Ikeas gross profit in 2022
10.6%
List all objectives of financial management
Profit, Efficiency, Growth, Solvency, Liquidity
List six of the seven financial institutions
Banks, investment banks, finance companies, superannuation funds, life insurance companies, unit trusts and ASX
List five of the six limitations of financial reports
Normalised earnings, capitalising expenses, valuing assets, timing issues, debt repayments and notes to financial statements
What are the four syllabus of financial management strategies?
Cash flow management, working capital management, profitability management and global financial management
What is Emily Jones' middle name?
Johanna