BF 1

• ACCOUNTING

  financial transactions, CPA, debit
• ECONOMICS

  scarcity, demand, inflation, exchange rates
• REPORTS

  balance sheet, vouchers, cash flow, budget
• BUSINESS

  corporation, partnership, proprietorship
• FINANCE

  expenses, money, sales, disbursement
• Finance is a field in economics that focuses on the allocation of scarce resources which include money
• Finance


  As a verb, it simply means "to provide funding"
• Basic questions finance addresses

  • What types of investments should the firm undertake?
  • What sources of funds should the firm tap to fund these investments?
  • How can the firm ensure that its cash flows will suffice to support its day-to-day business operations?
• Financial Management


  Covers the planning, organizing, leading and controlling of all financial activities of an organization that puts emphasis on managing the business funds in order to create value for the firm by minimizing risks (costs), maximizing returns (revenues) or both
• Branches of Finance


  • Public Finance
  • Private Finance
• Private Finance


  • Personal Finance
  • Corporate Finance
• Corporate Finance


  • Financial Markets and Institutions
  • Investments
  • Financial Services
  • Business Finance
• Managerial Accounting


  Involves the preparation of reports that are intended to aid internal users in decision-making to ensure good or better performance in the future
• Financial Accounting


  Keeps track of all the historical transactions of a business that will be used in preparing reports intended for use by external parties
• Managerial accounting


  May rely on financial accounting in which its information is vital to the role of the finance manager
• Decision makers depend largely on financial information gathered and analyzed by finance managers
• Finance managers are always involved in identifying goals, setting targets and establishing control measures in order to monitor performance
• Financial information is generated by different areas in an organization, however, it is the task of the finance manager to gather all these data and put them together in a format that is clearly and easily understood by decision makers
• Types of Financial Institutions

  • Commercial Banks
  • Savings and Loans Banks
  • Credit Unions
  • Investment Banks
  • Insurance Companies
  • Brokerage
  • Investment Companies
  • Pawnshops
  • Government Financial Institutions
• Roles of Financial Institutions

  • Reduce Costs
  • Diversification
  • Pooling of Funds
  • Financial Flexibility
• Financial Instrument


  A document that signifies a legal or binding agreement between two parties
• Types of Financial Instruments

  • Savings
  • Loans
  • Bonds
  • Security
  • Treasury Bills
  • Insurance Products
  • Mutual Funds
• Financial Market


  A means for the buying and selling of stocks, bonds and other financial instruments
• Types of Financial Markets

  • Money Markets
  • Capital Markets
• Careers in Finance


  • Banker
  • Broker
  • Financial Advisor
  • Stockbroker
  • Fund Manager
  • Academe
  • Consultant
  • Country Manager
  • Corporate Finance Officer
• Qualities of a Finance Professional

  • Competence
  • Integrity and Honesty
  • Analytical Thinking
  • Leadership
  • Organize
  • Tactician
• Financial Institutions facilitate the flow of funds
• The significance of financial management in business is that it helps create value for the firm by minimizing risks (costs) and maximizing returns (revenues)
• Private Finance


  Covers the management of financial resources of any private entities to meet its financial objectives
• Public Finance


  Deals with the revenue and expenditure patterns of the government and their various effects on the economy
• The most important quality of a good finance professional is integrity and honesty