FundamentalsofBusiness国际商务导论.pptVIP

Fundamentals of Business国际商务导论 Lecture 10: Financial Management 财务管理 What to cover today： Accounting Financial statements Financial ratio analysis Sources of financing Exercises 1. Accounting Accounting 会计 is: -- the process of (1) collecting financial data, (2) organizing and analyzing them using agreed-upon accounting rules, and (3) reporting the results of this analysis in financial reports and statements Accounting makes its functional contribution to a firm by providing the tools and methods the firm needs to accurately measure its revenues, costs, expenses, money, assets, and capital so managers can evaluate how much profit their business activities are generating. An accounting system 会计系统 is often used by a firm to facilitate its accounting activities. 1.1 Functions of accounting 1. Reporting: to report accurate and up-to-the-minute financial data, also called financial disclosure 财务披露; accounting activities performed for reporting purposes is termed financial accounting 财务会计 Bookkeeping 簿记: the recording of a firm’s financial transactions 会计工作的初级阶段 Reporting to investors 投资人: current or potential shareholders to predict stock price rise or decline Reporting to creditors 债权人: to assess the firms’ liquidity 资产流动性 (ability to sell existing assets) so as to determine whether to provide loans (potential creditors), or to predict the probability that the firms will default on loans (current creditors) Reporting to government officials: e.g. all U.S. firms are required to periodically report their financial standing to the Internal Revenue Service (IRS) so that their taxes can be determined 2. Decision support: to help managers make decisions; accounting activities performed for supporting decision-making is termed managerial accounting 管理会计, e.g. financial managers: use historical revenue and cost information for budgeting decisions marketing managers: use sales information to evaluate the impact of a particular promotion strategy production