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Flashcards in Meanings Deck (25)
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1
Q

The Science and art of managing money

A

Finance

2
Q

The act of estimating revenue and expenses over a period of time

A

Budgeting

3
Q

The act of bringing money into the organization

A

Financing

4
Q

Give three methods of financing

A

a. Taking on debt
b. Credit arrangement
c. Investments on real assets and financial assets

5
Q

Is an integrated strategy that takes into account various departments such as sales, production, marketing, and operations

A

Long-Term Financial Plans

6
Q

Specify short term financial actions and the anticipated impact of those actions. Solving immediate problems and developing strategies that will lend to results usually within one year

A

Short-Term Financial Plans

7
Q

For a business enterprise, having the right amount of cash is important since cash is used to make payments for purchases

A

Cash Budget

8
Q

This includes collections from receivables, proceeds from loans or issuance of new shares of stock

A

Cash Receipt

9
Q

This is the cash used for paying
ex. expenses such as salaries. utilities, rent, and taxes

A

Transactional

10
Q

The cash held to meet bank requirements such as the minimum cash balance for checking accounts

A

Compensating Balance

11
Q

What are the two primary reasons for holding cash

A

Transactional and Compensating Balance

12
Q

Is the cash maintained for emergencies such as the additional cash you keep during political and economical uncertainties

A

Precautionary

13
Q

Refers to the cash held by the company to take advantage of opportunities

A

Speculative

14
Q

What are the two secondary reasons for holding cash

A

Precautionary and Speculative

15
Q

Measure of a company’s total financial resources

A

Gross Working Capital

16
Q

Provides a much more thorough comprehensive picture of a company’s financial health

A

Net Working Capital

17
Q

What are the two concepts of working capital

A

Gross Working Capital and Net Working Capital

18
Q

Objectives of Financial Management

Which of the following is incorrect?

a. ensures regular and adequate supply of funds

b. ensures adequate returns of shareholders

c. ensures optimum fund utilization

d. ensures safety of investments to achieve adequate rate of return.

e. plan a sound capital structure so that the balance between equity capital will be maintained

d. ensures that the company receives their liquid assets by the end of the year

A

D

19
Q

Give the four functions of the CFO (Chief Financial Officer)

A
  1. Financing
  2. Investing
  3. Operating
  4. Dividend Policies
20
Q

Elect the board of directors each share held is equal to one voting right

A

Shareholders

21
Q

The highest policy making body in a corporation

A

Board of Directors

22
Q

The role of a president in a corporation may vary from one company to another

A

President (Chief Executive Officer CEO)

23
Q

The sale of either bonds or stock to the general public

A

Public Operate

24
Q

Brings buyers and sellers together to trade stocks, bonds, currencies, and other financial assets

A

Capital Market

25
Q

Where investors buy and sell securities they already own

A

Secondary Market