C. Principles Of Financial Funding and Structure Flashcards
works directly under or alongside the CEO and Board of Directors. The ______ prime responsibilities include managing the company’s finances, providing leadership, and advising the CEO/ board of directors on strategic financial recommendations.
is the highest financial position at a company and manages the whole financial division.
Chief Financial Officer
is to oversee the management of the financial affairs of the organization. This often includes the basic tasks of selecting a bank, reconciling bank statements, and managing cash flow.
Treasurer
used the data provided by the junior members of staff such as the
managerial accountant, financial accountant, and tax accountant, the ________ verifies the financial data of the organization. It includes risk management and risk control over the effectiveness of the operations.
Internal Auditor
an employee or in a larger company the FP and A team, is to provide, analysis, planning, reporting and forecasting that aids in the decision making process for the CFO, CEO, and Board of directors.
Financial Planning and Analysis Analyst
they are known as the leader of the accounting team, and are in charge of closely monitoring the company’s financial health. They typically maintain, manage, and analyze financial statements, payroll, budgets, tax compliance issues, and more.
Controller
they will make financial decisions that positively influence the company’s growth. Some ot the tasks of a _______ accountant are to manage the company’s numerous transactions, create budgets and incorporate data from past mistakes to prepare for future decisions.
Managerial Accountant
prepares the company’s financial statements using GAAP also known as, Generally Accepted Accounling Principles.
Financial Accountant
assist in preparing tax reports for governmental agencies, including the Internal Revenue Service. ______ accountants may provide their services to individual clients or for large scale corporations. A _____ accountant working for individual clients will provide assistance on how to properly fill out tax forms, and advise about future financial decisions.
Tax Accountant
is a solution that’s growing in popularity for small and medium-sized businesses that need working capital quickly. It comes from alternative lenders who specialize in helping small businesses with obtaining working capital quickly.
Short-term Financing
provides business owners with a large amount of capital for extensive, multi-year use. This is the go-to type of financing for large, established businesses that have a long-documented financial history, plenty of collateral, and a purpose for the proposed working capital.
Long-term Financing
Sources of Short-term Financing
Overdraft Agreement
Accounts Receivable Financing
Customer Advances
Selling Goods on Installment
By entering into an ______ with the bank, the bank will allow the business to borrow up to a certain limit without the need for further discussion.
The bank might ask for security in the form of collateral and they might charge daily interest at a variable rate on the outstanding debt.
Overdraft Agreement
Many banks and non-banking financial institutions provide invoice discounting facilities. The company takes the commercial bills to the bank which makes the payment minus a small fee.
Accounts Receivable Financing
There are many companies that insist on the customer making an advance payment before selling them goods or providing a service.
This method also ensures that the company has some funds to channel into its operations for fulfilling those orders.
Customer Advances
Many companies, especially those that sell television sets, fans, radios, retrigerators, vehicles, and so on, allow customers to make their payments in installments. Since many of these items have become modern-day essentials, their customers might not come from well-to-do backgrounds or the cost of the product might be too prohibitive for immediate payment.
Selling Goods on Installment