P4 Flashcards
FINANCE AND ACCOUNTING
related in that they both deal with money and financial transactions.
FINANCE AND ACCOUNTING
art of recording, classifying and summarizing transactions and events which are, in part of a financial character and interpreting the results. SERVICE ACTIVITY
ACCOUNTING
reader is able to learn the firm’s revenues and expenses, and if the firm is earning a profit or incurring a loss. It shows the firm’s profitability which is an indication of stability for the firm.
INCOME STATEMENT
reader is able to know the firm’s assets, liabilities and capital or owner’s equity; he is able to know a firm’s stability, liquidity, and solvency.
BALANCE SHEET
shows how the owner’s equity changed. This shows whether the capital has increased or decreased.
STATEMENT OF CHANGES IN OWNER’S EQUITY
is a statement of the sources and used of the company’s cash/funds. This statement details from where the funds came from – owners, creditors, or customers.
CASH FLOW OR FUNDS FLOW STATEMENT
Is the management of money or the money resource itself.
FINANCE
Includes tangible and intangible resources needed by a company to attain its goal.
NON-HUMAN CAPITAL
include financial assets such as cash and marketable securities that help in maintaining a healthy working capital position. Include real assets of property, plant, and equipment.
TANGIBLE ASSETS
Include goodwill, copyrights, trade names and brand among others.
INTANGIBLE ASSETS
Includes human resources, the employees, including the rank and file employees, the managerial employees, consultants, auditors, among others are utilized by the company to attain its goals and objectives.
HUMAN CAPITAL
Means additional investment in assets, which, in turn, requires the need for additional capital or funding.
GROWTH IN SALES
Involves making forecasts of sales and expenses under alternative production and marketing strategies and deciding how to meet the forecasted financing requirements. Involves budgeting which is part of the accounting process and function.
FINANCIAL PLANNING
Deals with the feedback and correction phase that are required to ensure plans are followed or modified to respond to the environment to attain set goals, financial.
FINANCIAL CONTROL
Is the branch of accounting that deals with the recording of business transactions and, the preparation of the financial statement. the basic objective of financial accounting is to provide the objective financial information about how the business is performing and how stable the company is.
FINANCIAL ACCOUNTING
the branch of accounting concerned with providing information to managers, those inside the organization, and those who direct and control the company’ operations.
MANAGERIAL ACCOUNTING
Includes information on the costs of products and services, budgets, performance reports, and other information which assists managers in their planning and control activities.
MANAGERIAL ACCOUNTING INFORMATION
Concerned with the efficient and effective allocation, acquisition and use of funds
FINANCIAL MANAGEMENT
Responsible for forecasting and planning, making major investment and financing decisions, coordination and control, and dealings with the financial markets.
FINANCIAL MANAGERS
