INTRODUCTION TO FINANCIAL MANAGEMENT UNIT-1. ... business concern and leads to take financial planning of the concern. ... Financial Accounting This function involves the preparation of the financial statements for the firm, such as the balance sheet, income statement, and the statement of cash flows. ...
1 Chapter 1 -- An Overview of Financial Management What is finance: cash flows between capital markets and firm’s operations The goal of a firm Forms of business organization Intrinsic value and market price of a stock ... Chapter 1 -- An Introduction To Financial Management ...
Chapter 1: Introduction Change in Financial Position A change in financial position is measured in terms of change in net assets divided by total revenues. This ratio is used to evaluate the change in a school district’s financial position based on a comparison of the resources it generally owns or controls with the obligations it faces.
Jan 03, 2020 · Financial Statement Analysis is a method of reviewing a nd analyzing a. company‘s accounting reports (financial statements) in order to gauge its past, present or …
Analysis of a school district’s financial condition is generally based on data elements used to construct a series of ratios that depict the short- and long-term district financial situation . These ratios aid in the interpretation of finance data and are used in financial statements and reports to compare the relationship between financial elements. For example, it is difficult to assess whether revenues are sufficient by reviewing revenues alone. Rather, it is more meaningful to compare revenues with another financial element, such as liabilities or net assets. This produces a measure that is comparable for different fiscal periods for the same entity and among other similar entities. Ratios are useful tools for financial statement analysis because they conveniently summarize data in a form that is more easily understood, interpreted, and compared.
Revenues and expenditures are the primary components used to create financial ratios by presenting an amount per specified base, such as revenue or current expenditure per pupil. Common revenue classifications include local, state, intermediate, and federal sources, and are further classified by the source of revenue generation, such as local property tax. Common expenditure classifications include operating (or current), capital, and debt service, and are generally reported at the school district level and aggregated to the state level. These classifications may be disaggregated into functional areas in order to provide a more detailed financial analysis. For example, community services expenditures may be excluded from total current operating expenditures in order to identify expenditures specifically related to public elementary and secondary education.
Fiscal capacity ratios measure a school district’s ability to generate resources that can be used to finance the provisions of services to students. Many of these indicators combine a school district’s financial statement information with economic, demographic, and tax-related data. These ratios compare revenues, expenses, and debt to measure the community’s ability to pay for school district services. Full-time equivalent student counts are used in many of the following ratios; however, other measures of student counts can be substituted.
The basic premise of the CWI is that all types of workers—including teachers—demand higher wages in areas with a higher cost of living or a lack of amenities. The CWI was released in May 2006. This is the only geographic index available from NCES as of July 2006. As of the time of publication for this guide, the CWI has been updated for use with 2004 education finance data. Periodic updates will be made to this index. Additional information about this index can be found at http://nces.ed.gov/edfin/prodsurv/data.asp.
Economic adjustment indexes can be used in education finance to put into context the value of education dollars. These adjustment indexes are often incorporated into adequacy funding formulas or research analyses. This is done by adjusting for differences in the purchasing power of different school systems or by adjusting for changes in general prices over time. Some economic adjustment indexes encompass broad areas of the economy and can be applied to areas other than education. Other indexes—called cost of education indexes (CEIs)—emphasize education-related factors. The common component in these CEIs is teacher salaries, because they make up the majority of education operating costs. Both the general and CEI indexes can be used in resource analysis to help estimate the funds needed for educational services. Additionally, many of these indexes can be used to compare the financial resources available across communities or school districts. Some of the more common indexes are identified below with additional descriptions for the indexes that continue to be updated.
This is a measure of the average change over time in the prices paid by consumers for a fixed market basket of consumer goods and services. The CPI provides a way to measure the change in prices over time for a single area. While the CPI was not designed specifically to be used with education finance data, it is a common measure that is continuously updated. However, the CPI cannot be used to measure differences in price levels or costs between one place and another; it measures only period-to-period changes for the nation as a whole. The CPI is published monthly, allowing for annual inflation to be defined for any 12-month period. Since most school districts operate on a fiscal year that begins on July 1, a CPI calculated for a July-to-June year is usually used to adjust public education finance data. Additional information about this index can be found at http://www.bls.gov/cpi (U. S. Department of Labor 2006).
Financial position ratios are used to evaluate the current and past financial condition of a school district in terms of the nature of its debts and obligations and the resources available to repay them.
Financial Statement Analysis is a method of reviewing a nd analyzing a. company‘s accounting reports (financial statements) in order to gauge its past, present or projected future performance. This process of reviewing the financial. statements allows for better economic decision making.
The American institute of certified public accountants (AICPA) states the nature. of financial state ments as , ―financial statements are prepared for the purpose. of presenting a periodical review or report on progress by the management and.
The function of the financial analyst is based on the analysis of the financial statements, which is one of the main tools used in the financial and economic decision-making by the various parties related to the entity such as management, employees, investors, shareholders, lenders, customers, the government and the public in general.
The first comprehensive SIC for the United Kingdom was issued in 1948 . The classification has been revised on many occasions and in order to comply with EU data standards, the SIC was redrawn in 2007 and the new classification scheme will come into effect at the beginning of 2008.
An organization chart should be produced showing the position of the food and beverage department within the context of the total establishment. An organization chart presents graphically the basic groupings and relationships of positions, and a general picture of the formal organization structure.
2. To coordinate the development, interpretation and implementation of hotel policies, operating procedures and training programs, manuals, directives, menus, work schedules, rules and regulations for the food and beverage staff and personnel. 3.
The second set of questions that we would like to answer and accounting statementsto shed some light on relates to the current value and subsequently the mixture of debt andequity used by the firm. The bulk of the information about these questions is provided onthe liability side of the balance sheet and the footnotes.
The statement of cash flows can be viewed as an attempt to explain how much the cashflows during a period were , and why the cash balance changed during the period.
An asset is any resource that has the potential to either generate future cash inflowsor reduce future cash outflows. While that is a general definition broad enough to coveralmost any kind of asset, accountants add a caveat that for a resource to be an asset. A firmhas to have acquired it in a prior transaction and be able to quantify future benefits withreasonable precision. The accounting view of asset value is to a great extent grounded in thenotionhistoricalof , whi costh is the asset,originaladjusted upward costf r of the improvementsmadeto heasset sincepurchase andownwardsforthe loss invalueassociated with the aging of bookthe asset..valueWhile This historical cost is called the the generally accepted accounting principles for valuing an asset vary across different kindsof assets, three principles underlie the way assets are valued in accounting statements.
In a pension plan, the firm agrees to provide certain benefits to its employees, eitherby specifying a 'defined contribution' (wherein a fixed contribution is made to the plan eachyear by the employer, without any promises as to the benefits which will be delivered in the
The firstis disclosures about potential obligations or losses in values that show up as footnotes onbalance sheets, which are designed to alert potential or current investors to the possibility ofsignificant losses. The second is the ratios that are designed to measure both liquidity anddefault risk.
Accounts receivable represent money owed by entities to the firm on the sale ofproducts on credit. When the Home Depot sells products to building contractors and givesthem a few weeks to make the payment, it is creating accounts receivable. The accountingconvention is for accounts receivable to be recorded as the amount owed to the firm, basedupon the billing at the time of the credit sale. The only major valuation and accounting issueis when the firm has to recognize accounts receivable that are not collectible. Firms can setaside a portion of theirbad debtsfromincome credit to cover sales, expected and accountsreceivable will be reduced by this reserve. Alternatively, the bad debts can be recognized asthey occur and the firm can reduce the accounts receivable accordingly. There is the danger,
1. Process Control: In the production process, a computer is directly connected to some plant to control and monitor it. Here, the computer receives the data directly from the plant. It analyses the input data and initiates action to control the on- going process.
A system software (like operating system) acts as an interface between the user and the computer hardware, while application software performs specific tasks. Applications are pieces of software that perform tasks for the user besides helping the computer operate, which is the tasks of system software.
In simple terms, a computer is an electronic device that performs diverse operations with the help of instructions to process the information in order to achieve the desired results. Computer application extends to cover huge area including education, industries, government, medicine, scientific research etc.
A program controls the activity of the processor. The moment the hardware (processor, memory, etc.), acts as per the instructions of a program, the program is said to be in running or executing state.
The CPU is also responsible for activating and controlling the operations of other units of a computer system. The control unit and the arithmetic logic unit of a computer system are jointly known as the Central Processing Unit.
Hardware The physical components of the computer, such as electrical, electronics and mechanical unit are known as the hardware of the computer. That is, the input units, output units and CPU are called hardware. Thus hardware is the equipment involved in the function of a computer.