Role
Define what a financial resource is.
Cash or an item of monetary value that a business holds.
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.
the capital needed to pay tor raw materials, day-to-day running costs and credit offered to customers
Working Capital
What is the strategic role of finance?
The process of managing the finances of a company to meet the organisation's goals.
Define economic outlook
Refers to the projected changes in the future on global economic growth
</= 12 months is __________ finance
>12 months is ___________ finance
Short Term (Current)
Long Term (Non-Current)
Selling of credit sales to a specialist organisation in exchange for immediate liquidity
Factoring
What is the efficiency ratio?
Total expenses divided by sales\
or
Sales / Accounts Receivables
How does finance interdepend with operations
They provide operations with a budget to undertake tasks and operations report on the costs involved in the production of goods and services.
What is the type of long-term loan from investors with a fixed interest and time period?
Debentures
List three of the five planning and implementing strategies
Financial needs, budgets, record systems, financial risks, financial controls
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
- It never has to be repaid
- Dividends do not have to be paid every year
- It lowers the indebtedness of the business
Advantages of Share Capital/Equity
A business is planning to increase its market share by merging with a competitor.
What is the financial objective?
Growth
List the three types of short-term borrowing
Overdraft, commercial bills and factoring
What are the profitability ratios?
NP/Sales = Net Profit Ratio
GP/Sales = Gross Profit Ratio
Owner's Equity/Sales = Return on Owner's Equity
How can a business control its current liabilities
Accounts Payables terms
Loans and Overdrafts payment times and terms
What are the two key questions a financial manager should ask when determining the source of finance
1. Why it is needed?
2. How long is it needed for?
3. How much will it cost?
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