Introduction To Finance Flashcards
What is sustainable finance?
Any form of financial service that integrates environmental and social considerations in addition to profitability into lending and investment decisions
Banks who follow sustainable finance are committed to what audience?
Companies that have integrated or intend to integrate the triple bottom line in their operations
What is the triple bottom line?
A framework that encourages companies to focus on people, planet, and profit in their operations
What is financial management?
It is the strategic planning, organizing, directing, and controlling of financial undertakings of a company
What is accounting?
Set of concepts and techniques used to measure and report financial information about an economic unit
Why do you need accounting information, especially in business?
To drive the decision-making process
What are creditors concerned about?
An entity’s ability to pay its obligations
What is financial accounting?
Concerned about external reporting to a broad base of external users
What is managerial accounting?
Used for business planning and does not follow any standards. For internal use.
What is the fundamental accounting equation?
Assets = liabilities + equity
It is the core financial report that is prepared to represent the financial position and operations of a company.
Financial statement
What is articulation?
The income statement, statement of retained earnings, and balance sheet mesh together in a self-balancing fashion
It summarizes the revenues, expenses, and results of operations for a specified period of time
Income statement
Discloses changes in retained earnings during a designated period of time
Statement of retained earnings
It states the economic resources owned by an entity and the claims against those resources. It is prepared as of a specific date
Balance sheet
