Finance Skills for Managers D076 Study guides, Class notes & Summaries

Accounting - The system of recording, reporting, and summarizing past financial information and transactions. Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by accounts receivable. Activity Ratios - A category of ratios that measure how well a company uses its assets to generate sales or cash, showing the firm's operational efficiency and profitability. Additional Funds Needed (AFN) - Another name for the discretionary financing needed or exte...

Accounting - The system of recording, reporting, and summarizing past financial information and transactions. Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by accounts receivable. Activity Ratios - A category of ratios that measure how well a company uses its assets to generate sales or cash, showing the firm's operational efficiency and profitability. Additional Funds Needed (AFN) - Another name for the discretionary financing needed or exte...

What are the main services offered by financial institutions? - Accepting a wide variety of deposits, offering investment products, providing loans, and brokering financial transactions (Correct! Financial institutions such as banks, insurance companies, and mutual fund companies provide these services.) What is the main objective of personal financial goals? - To maximize individual utility (Correct! You set goals and act to increase your satisfaction or happiness by taking care of necessi...

Which area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? - Business finance What is the primary difference between finance and accounting? - Finance focuses on the future, while accounting is generally backward-looking. Which subspecialty of finance primarily involves deciding which assets will create more wealth and earn positive returns? - Investments What is the primary goal of the financial ma...

Finance Skills for Managers - D076 Questions and Answers Rated A

Unit 2 (Module 1) What area of finance involves deciding which assets to invest in to create wealth in the future? - ️️Unit 2 Investments (Investments are an area of finance that involves deciding which assets to invest in to create wealth in the future.) Hannah is the financial manager of a firm. A project that she has recommended has been approved and will cost $5 million. Since the company does not have enough cash on reserve, Hannah must figure out how to raise enough money t...

Which area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? - ️️Business finance What is the primary difference between finance and accounting? - ️️Finance focuses on the future, while accounting is generally backward-looking. Which subspecialty of finance primarily involves deciding which assets will create more wealth and earn positive returns? - ️️Investments What is the primary goa...

What are the main services offered by financial institutions? - ️️Accepting a wide variety of deposits, offering investment products, providing loans, and brokering financial transactions (Correct! Financial institutions such as banks, insurance companies, and mutual fund companies provide these services.) What is the main objective of personal financial goals? - ️️To maximize individual utility (Correct! You set goals and act to increase your satisfaction or happiness by taking...