NAB Finance

1. Process of Financial Management: process of ensureing materials and other resources are bought and used efficiently and economically; attain goals. 2. Value of Financial Management: Administrator has informatio to make decision and manage facility. Control device - measure performance against original plans. 3. Administrator's role in Financial Mangement: 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. 4. asset: a thing of value, things owned, such as cash, equipment, real estate. 5. current asset: cash or other short-lived asset, i.e. A/R and CDs that are used up usually within 1 year.2 / 13 6. fixed or non-current assets: will not be used up within a year||i.e. building, equipment, etc. 7. tangible assets: have physical characteristics, they can be SEEN and TOUCHED 8. Intangible assets: are non-physical, such as COPYRIGHTS, patents and GOODWILL 9. book value: is cost of a depreciable asset less accumulation depreciation ||depreciable asset - depreciation 10. capital: is a term meaning funds to be used in business. Real esate, buildings and certain equipment can be included under certain conditions. | 11. investment capital: cash used to purchase real estate and equipment, and to build - used to produce operational revenues. 12. working capital: excess of CURRENT ASSETS/CURRENT LIABILITES. |A measure of company's ability to pay bills. 13. capital expenditure: expenses of increasing book value of facility assets. 14. contract for personal services: involves the offer of money, consideration, acceptance. Spell out duties, authority, time, remuneration, ESCAPE CLAUSE, other terms3 / 13 15. earnings: refers to generated revenues, or income. Gross erarnings are total revenues or income 16. gross profit: net sales - cost of g