Flashcards in The Finance Function Deck (14):
What are the qualities of good accounting information? CCCRROT
What are the different types of accounting?
Financial Accounting - Routine accounting, providing reports, cashier duties
Management accounting - cost, budgets, financial management of projects
Treasury - Raising funds, cash flow control, investments
Internal Audit - preventing fraud, following regulations
Define: Financial Accounting
A method of reporting the results and financial position of a business in its financial statements
Earnings per share formula
Profit after tax (less preference shares) / Weighted average of ordinary shares in issue
Price per earnings ratio
Share price / Earnings per share
Dividends yield formula
Dividends per share / Current share price x 100
What is in a cost card?
Direct material costs
Why are budgets used? CRUMPET
What are the main roles of a treasurer?
Working capital management
Gearing ratio formula
Long term debt / shareholder funds x 100
What are the different types of tax processes?
Tax avoidance - legal but not in the spirit of the law
Tax evasion - illegal
Tax mitigation - Legal and in the spirit of the law
What are the two types of conflict?
Interdependent - eg, all finance works together as each are is dependent of each other.
Independently - eg. The audit team needs to work separately from the finance team to ensure work is being done correctly.
Business Process Re-engineering
Is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed