BUSFIN Flashcards
Science and art of correctly applying economic and accounting concepts and principles that define the system, structure, and process of management, allocation, and utilization of financial resources, investments, and expenditures.
Business Finance
Social science deals with efficiently allocating scarce resources to satisfy man’s unlimited needs and wants.
Economics
Resources that are expected to provide income and achieve appreciation or growth of the business.
Financial Investment
4 Functions of Money and explain each.
- Medium of Exchange
- Store of Value
- Standard of Value
- Means of Deferred Payment
The process of managing financial resources, including management decisions concerning accounting and financial reporting, forecasting, and budgeting.
Financial Management
Two Core Processes of Financial Management
- Finance Operations
- Research Management
Areas of Finance
Public
Private
- Personal Finance
- Business Finance
3 types of inventory. (Optimal inventory)
Raw materials
work in process,
finished goods/ Merchandise Inventory
Studies different financial institutions and their functions that provide and public borrower of funds.
Financial Institutions
Offered by organizations whose job is to help people manage money.
Financial Services
Two goals of a corporation
Maximize shareholder’s wealth. (Evident in balance sheet)
Maximize the profit. (Evident in Income Statement)
Decisions/ Acts of a financial officer (traffic order)
Operating
Financing
Investing
Responsible for the flow of funds from the lender to the borrower
Financial System
Elements of Financial System
Financial Institution
Financial Market
Financial Instrument
2 characteristics of banks
- Raises funds through deposit
- Make loans to companies and individual
