AFM131 Lecture Notes - Lecture 9: Financial Statement, Interest Rate, Financial Plan
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AFM131 Full Course Notes
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Today"s cfo does far more than financial reporting, control and compliance. Greater expectations as business partner and trusted member of the seni. Cpa canada identified 4 competency areas/roles of a cfo: Ceos have the same competency areas/roles, just different weights, therefore. The most common ways for firms to fail financially. Under capitalization: not having sufficient funds to start. Predicting revenues, costs, and expenses for a period of one year or less. Predicting revenues, costs, and expenses for longer than one year. Budget: management"s expectations for revenues and, on the basis of those expecta specific resources throughout the company. Operating (master) budget: ties together all of the company"s other budgets. Capital budget: highlights spending plan for major asset purchases. Financial control: process in which a firm periodically compares its actual revenue budget. Fraud detection r doors? xpectations, allocates the use of revenues, costs, and expenses with its. Need to offer credit terms for customers (especially b2b)