NAB Finance EXAM Questions with verified 100% correct Answers complete solution

Process of Financial Management - process of ensuring materials and other resources are bought and used efficiently and economically; attain goals. Value of Financial Management - Administrator has information to make decision and manage facility. Control device - measure performance against original plans. Administrator's role in Financial Management - owners hold administrator responsible for proper financial management of facility. Varies according to type of ownership. Chain organizations may do budgeting, payroll, group purchasing - administrator may have little input. Smaller organizations usually have CPA to supervise accounting, make financial reports, handle payroll, etc. Asset - a thing of value, things owned, such as cash, equipment, real estate. Current asset - cash or other short-lived asset, i.e. A/R and CDs that are used up usually within 1 year. Fixed or non-current assets - will not be used up within a year||i.e. building, equipment, etc. Tangible assets - have physical characteristics, they can be SEEN and TOUCHED Intangible assets - are non-physical, such as COPYRIGHTS, patents and GOODWILL