COMMERCE 1E03 Chapter Notes - Chapter 17: Commercial Bank, Accounts Receivable, Financial Institution
19 Apr 2018
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Finance: function in business that acquires funds for the firm & manages them within the firm. Activities includes: preparing budgets, completing cash flow analysis, and planning for the expenditure of funds on assets (ex. Financial management: the job of managing a firm"s resources to meet its goals and objectives. Financial managers: examine the financial data prepared by accountants and recommend strategies for improving the financial performance of the firm. Chief financial officer (cfo): control both the accounting and the finance functions, generally the 2nd highest paid person in an org, often advance to the top job of ceo. 3 most common reasons a firm fails financially: undercapitalization (insufficient funds to run a business, poor control over cash flow, inadequate expense control. Internal auditor: member of a firm"s finance department, checks the journals, ledgers, and financial statements the accounting dept. prepares, to ensure all transactions are in accordance to. Assists firms in financial planning and ensures accounting statements are reliable.
