Finance Fundamentals
This is the management of money in a business.
What is Finance?
A person who keeps financial records.
Accountant
What a business owes.
Liabilities
The process of creating goods/services
Operations?
This is the department that buys materials and supplies.
Purchasing?
Things a business owns.
Assets
The system of recording financial information.
Accounting
Reports that summarize financial information.
Financial statements
Goods a business has to sell.
Inventory?
This checks products to make sure they meet standards.
Quality control?
Money moving in and out of a business.
Cash flow
Rules that guide how accounting is done.
Accounting Standards
A report showing profit or loss.
Income statement?
Managing stock levels
Inventory control
This determines the exact path materials take in production.
Routing?
Payments made to owners from profits.
Dividends
Recording income when earned and expenses when owed.
Accrual
A report showing assets and liabilities.
Balance sheet?
the detailed coordination of a complex operation involving many people, facilities, or supplies.
Logistics?
This plans the order and timing of tasks in production.
Scheduling?
The total value of a company or individuals
Net worth
the money spent on something
Expenses
People inside the company who use financial info.
Internal users?
The cost of storing inventory.
Holding cost?
This is what a business produces after work is completed.
output