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Business Finance > Prelims > Flashcards

Prelims Flashcards

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1
Q

covers the planning, organizing, leading, and controlling of all financial activities of an organization.

A

Financial Management

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2
Q

puts emphasis on managing the funds of an organization which includes day-to-day operations, investment decisions, and financing those investments.

A

Financial Management

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3
Q

cash outflows and inflows of the organization.

A

Cash Flows

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4
Q

an organization’s cash and cash equivalent

A

Cash Flows

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5
Q

what are the three major activities of Cash Flows

A

Operating Expense
Investing Activities
Financing Activities

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6
Q

base-line cash activities of the entity related to its normal operating cycle.

A

Operating Expense

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7
Q

related to the primary revenue-producing activity of the entity

A

Operating Expense

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8
Q

What are the activities under Operating Expense?

A

+ Cash Receipts From Sales of Goods and Rendering Services
+ Cash Receipts from royalties, fees, commissions, and other revenue
- Cash Payments to suppliers of goods and services
- Cash Payment to employees
- Cash Payment to Income Taxes
- Interest Paid
+ Interest Received
+ Dividends Received

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9
Q

result from acquisition and disposal of non-current assets.

A

Investing Activities

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10
Q

What are the activities under Investing Activities?

A
  • Cash Payments to acquire property, plant and equipment (PPE)
  • Cash Payments to acquire intangible assets
    + Cash receipts from sale of property, plant and equipment
    + Cash receipts from sale of intangible assets
    + Cash receipts from sale of their long-term assets
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11
Q

arise from changes in non-current liabilities and owner’s equity of a business organization.

A

Financing Activities

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12
Q

What are the activities in the financing activities?

A

+ Cash Investments from owners
+ Cash proceeds from bank loans
- Cash distributions to owners
- Repayment of Bank Loans

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13
Q

Rule Decisions in Determining Classification of Cash Transaction

A
  1. Operating: Profit or Loss
  2. Investing: Non-current Assets
  3. Financing: Equity and Non-current Liabilities
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14
Q

includes activities that companies undertake to innovate and introduce new products and services.

A

Research and Development

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15
Q

what department does the Financing Department assist in terms of budget devoted for the creation of new products or improvements that need to be made on existing products.

A

Research and Development Department

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16
Q

refers to an organization’s efforts to create and maintain a positive relationship with its employees.

A

Employee Relations

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17
Q

the department that will rely on Finance for data on how much the organization can spend on wages, benefits, learning and development, and activities aimed at boosting employee morale

A

Office of Human Resource

18
Q

how does Finance help the Marketing Department in Marketing Promotion?

A
  • determine the optimal amount of budget that should be spent on marketing activities such as advertising and promotion.
  • determine the prices that are charged on products introduced to the market
  • monitor on a regular basis how much cash is generated in order to ensure the sustainability of the business.
19
Q

the process that a business uses to determine which proposed fixed asset purchases it should accept, and which should be declined.

A

Capital Budgeting

20
Q

in this operation, Finance will have to supply the organization with historical financial data to see whether or not past performance can help predict the financial outlook if additional capital expenditure is to be made.

A

Expansion

21
Q

an event (such as an emergency) that may but is not certain to occur.

ex. natural disasters, hackers

A

Contingency

22
Q

Finance can help the organization by including in the budget provisions for emergencies.

A

Meeting Contingencies

23
Q

Such approach also minimizes the disruption in the way the business operates when one or more of these contingencies occur.

A

Meeting Contingencies

24
Q

describes a person or entity that helps to facilitate communication between two parties.

A

Liaison

25
Q

How does finance serve as a liaison between organization and government agencies?

A

It is responsible for figuring out how much taxes are due, the licenses and permits that need to be processed and paid to continue with operations.

26
Q

assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment.

A

Fixed Assets

27
Q

Finance is tasked to include in the master budget plan the disposal, sale, or acquisition of fixed assets.

A

Asset Management

28
Q

when Finance is also responsible for projecting future cash flows if the asset to be acquired is expected to bring in revenues or help with cost efficiency.

A

Asset Management

29
Q

How does the finance managers make sound financial decisions?

A

rely on information supplied to them by the different department heads, including the accounting supervisor.

30
Q

Information will be gathered, stored, processed, and made available to decision makers in a timely manner for it to be relevant.

A

Information Systems

31
Q

In order to make sound financial decisions, finance managers rely on information supplied to them by the different department heads, including the accounting supervisor.

A

Information Systems

32
Q

are people within a company who have the power to make strategic decisions like acquisitions, expansion, or investment.

A

Decision-makers

33
Q

Refers to the regular monitoring of business expenditure

A

Controlling

34
Q

What stage are budgett’s created?

A

Planning stage

35
Q

Are assets which are purchased for long term use

A

Fixed assets

36
Q

Refers to the task of determining how a business will afford to achieve its strategic goals and objectives

A

Planning

37
Q

What area of operation is responsible to pay the license and permits

A

Government agencies or liaison

38
Q

Area of operation that includes the master budget plan of the disposal, sale, or acquisition of fixed assets

A

Asset management

39
Q

Area of operation where the master budget provisions are for natural disasters

A

Meeting contingencies

40
Q

Which area of operation is capital budgeting?

A

Expansion

Business Finance (4 decks)

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