Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
24 Cards in this Set
- Front
- Back
Objectives of Financial Managemet |
Profitability, Growth, Efficiency, Liquidity, Solvency |
|
Internal Sources of Finance |
Retained Profits, Owner's Equity |
|
External Sources of Finance |
Debt, Equity |
|
Short Term Debt |
Overdraft, Commercial Bills, Factoring |
|
Long Term Debt |
Mortgage, Debentures, Unsecured Notes, Leasing |
|
Equity |
Ordinary Shares, New Issues, Rights Issues, Placements, Share Purchase Plans |
|
Financial Institutions |
Banks, Investment Banks, Finance Companies, Superannuation Funds, Life Insurance Companies, Unit Trusts, Australian Securities Exchange |
|
Government Influences |
Australian Securities and Investment Commission, Company Taxation |
|
Global Market Influences |
Economic Outlook, Availability of Funds, Interest Rates |
|
Planning and Implementing |
Financial Needs, Budgets, Record Systems, Financial Risks, Financial Controls |
|
Liquidity |
Current Ratio: CA/CL |
|
Gearing |
Debt to Equity Ratio: TL/TE |
|
Profitability |
Gross Profit Ratio: GP/Sales |
|
Efficiency |
Expense Ratio: Total Expenses/ Sales |
|
COGS |
Opening Stock + Purchases - Closing Stock |
|
GP |
Sales - COGS |
|
NP |
GP - Expenses |
|
Cash Flow Management Strategies |
Distribution of Payments, Discounts for Early Payments, Factoring |
|
Control of Current Assets |
Cash, Receivables, Inventories |
|
Control of Current Liabilities |
Payables, Loans, Overdrafts |
|
Strategies |
Leasing, Sale and Lease back |
|
Profitability Management |
Expense Minimisation, Revenue Controls |
|
Expense Minimisation |
Fixed Costs, Variable Costs, Cost Centres |
|
Revenue Controls |
Marketing Objectives, Expense Minimisation, Sales Mix |