BU121 Study Guide - Final Guide: Current Liability, Canada Labour Code, Capital Budgeting
Document Summary
Finance: financial management is made up of: accounting provides information, finance makes decisions about the acquisition, disposition and management of capital with the help of accounting information. Goals: viability liquidity and stability, we want to keep money in a form that can be used to pay bills (short term). Finance department s responsibilities: determining financial resources required, budgeting disposition, obtaining financial resources required, financing acquisition, managing the financial recourses effectively, working capital management, investing. Budgeting: three steps: forecasting financial needs, short term cash flow forecast, long term, developing budgets to meet those needs, master budget. Promotes communication and coordination among subunits of the organization . By clarifying goals and providing yardstick for rating performance source of motivation. Establishing goals or standards against which actual performance can be measured facilitates control. Means to reward waste and penalize thrift. Evaluate device perceived as a threat. *worksheet based on historical measures of amounts and timing of cash flows in working capital cycle.
