Week 1 Flashcards
What are the main workings of a financial function?
To purchase/invest in assets which should generate cash.
To payback investors who will raise cash and reinvest in the financial function
What are the responsibilities of the chief financial officer?
Financial Policy
Corporate Planning
What are the responsibilities of the treasurer?
Cash Management
Raising capital
Banking relations
What are the responsibilities of the controller?
Financial Statements
Accounting
Tax
What are the responsibilities of the financial function?
Financial Accounting
Financial Planning
What are some of the roles and responsibilities of financial accounting?
Maintain accurate records Sales invoicing Processing of credit and debit notes Management of sales terms Management of price changes Credit control Management of purchase orders Payment of purchase invoices Stock reconciliation Management of petty cash and expenses Provision of statutory accounts
What is not a part of financial accounting? -
Managing Paygrades
Credit Control
Stock reconciliation
Managing paygrades
What is a shell company?
A non-trading company set up for financial maneuvers
What is included in a principle statement of accounts?
Directors report Auditors report Profit and loss account Balance sheet Notes of account Cash flow statement (not required by company law)
What is prudence convention?
This promotes caution when assessing value.
What is objectivity convention?
The need for subjectivity to be eliminated and make sure there is evidence in numbers
What is money measurement convention?
Only include what can be measured in monetary terms. (E.g not happiness of customers etc.)
What is historic cost convention?
Consistency in recording depreciation of assets
What is consistency convention?
Consistency in interpretations for valuation purposes
What is materiality convention?
A certain amount of judgement is allowed when differentiating between assets and materials
