Business Finance/Finance Function Flashcards
4 roles of the finance function
- Recording financial transactions
- Management accounting
- Financial reporting
- Treasury management
Insuring the business has accurate records of its revenue and expenses assets liability and capital
Recording financial transactions
Providing information to help managers and other internal users in a decision making performance measurement planning and control activities
Management accounting
Providing information about a business to external users it’s useful to them in making decisions and assessing stewardship of business management (compliance with FRC and IASB standards)
Financial reporting
Managing the funds of the business cash and other working capital long-term investments short-term and long-term debt and equity finance
Treasury management
Financial information is useful to
Help users make decisions and show the results on managements stewardship and reasources entrusted to them
CATIVA criteria
- Completness
- Accuracy
- Timeliness
- Inalterability
- Verifiability
- Accessibility
A collection of people, machines and methods organise to accomplish a set of specific functions
Business system
All systems and procedures involved in the collection storage production and distribution of information
Information system
A system which performs records and processes routine transactions
Transaction processing system (TPS)
Convert data from mainly internal sources inside information enables manages to make timely and effective decisions
Management information system
Balanced score card
- Customer perspective
- Internal business process perspective
- Innovation and learning perspective
- financial perspective
Triple bottom line
- Social
- Environmental
- Economic
Set up over the concern the asset valuation is in financial markets do not correctly reflect climate related risks
Task force on climate related financial disclosures (TCFD)
Set up by managers to provide reasonable assurance regarding achievement of objectives
Internal control
