Deca Flashcards
Insurance
Insurance is a Risk Management Tool That Provides Financial Protection against losses. People make monthly payments to an insurance Company in Exchange for coverage. Insurance Helps Entities mitigate Financial risks and Provides a Sense of Security. Insurance payments do Not affect your Credit Score.
Determine insurance needs
Evaluate your Assets
Assess liabilities
Evaluate Ovulation and Lifestyle
Assess Financial goals
Update insurance needs regularly
Describe the need of Financial Information
Financial Information is vital for Planing, Evaluating Performance, complying with regulations, communicating with stakeholders and managing risk. It also provides necessary data to make informed decisions and it helps people assess financial liability feasibility and potential risks. Financial information allows people to set financial goals and set strategies to achieve them.
Buisnesses rely on accurate financial information to determine if it’s using resourses optimally.
None
Do they have loans avaliable
Do they have mortgages
Do they have cheques available
Do they have credit cards associated to their institutions
Do they do currency exchange
Do they have safe deposit boxes
Types of currency
Bank notes Are Made of paper and Are printed by the Central Bank. Coins are similar but made of metals. Government bonds Are issued by the Government to borrowers Money from people or buisnesses.
Code that lets you access your account
PIN
Accounting
Accounting is the process of recording financial transactions operating to a business. Accounting involves summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities.
Accrual accounting records revenues and expenses as soon as they are earned or owed, even if the transaction hasn’t been made yet. This makes it easier to gauge financial performance in a specific time period. A disadvantage is that this doesnt always reflect a business’s overall wellbeing.
Role of ethics in accounting
Ethics play a crucial role in accounting as they ensure integrity, trust and professionalism of the profession. Adhering to ethical principles is essential for maintaining public trust and confidence in the profession.
Use of technology
The use of technology in accounting involves leveraging software and digital tools to streamline financial processes, enhance data accuracy and improve decision making
Legal considerations in accounting
Legal considerations are complying with laws and ethical standards that govern financial reporting and auditing
An external Auditor is a Person That verifies a Companys Financial statements
A Virtual Auditor audits transactions as they occur
Cash flow statements
They present inflows and outflows of currency in a specific period. They provide information about a company’s operating, investing and financing activities. Cash flow statements help assess a company’s liquidity, cash position and ability to generate cash from its core operations.
Balance sheets
They are a snapshot of a companys financial position. They provide information about a company’s resources, obligations and ownership interests. They also help assess solvency, liquidity and financial health. It has three parts: assets, liability and equity.
Income statement
An income statement is a summary of revenue, expenses, gains and losses over a certain period. The basic calculation used to analyze it is income minus expenses. It shows a company’s profitability.
and ability to generate profit or incur losses. They help assess profitability, efficiency and financial performance.
Why you Need a Budget
Live below your means
Plan Short and Long Term goals
Elimination debt
Increase savings
Prioritize your life
Role of Finance in buisnese
The role of Finance is to Manage and Alligator Financial resources effectively to achieve an organizations goals. Finance involves activities like Financial Planning, Investment analysis, Capital budgeting, Risk Management and Financial decision making. Finance helps buisnesses optimize use of Funds, make Strategic Investments, assess Financial risks and maximize shaeholder Value
