what is the difference between finance and accounting - The easiest way to describe these
differences is that finance is forward-looking, or focuses primarily on the future, while accounting is
generally backward-looking and focuses on the past.
There are three primary areas in the world of fina...
d076 finance STUDY GUIDE
what is the difference between finance and accounting - ✔✔The easiest way to describe these
differences is that finance is forward-looking, or focuses primarily on the future, while accounting is
generally backward-looking and focuses on the past.
There are three primary areas in the world of finance: - ✔✔Business finance
Investments
Financial institutions
This area involves deciding which assets to invest in to create wealth in the future. - ✔✔Investment
The process of valuing assets - ✔✔ASSETS PRICING
What someone would pay right now for an asset. - ✔✔current market value
is an area of finance that involves organizations that accept deposits, offer investment products, loan
money, or broker financial transactions. - ✔✔Financial institutions
Which area of finance deals with sources of funding and the capital structure of corporations and seeks
to increase the value of a firm to its owners? - ✔✔Business finance
What is the primary difference between finance and accounting? - ✔✔Finance focuses on the future,
while accounting is generally backward-looking.
Which subspecialty of finance primarily involves deciding which assets will create more wealth and earn
positive returns? - ✔✔Investments
,the total satisfaction received from consuming goods and services - ✔✔Utility
What is the primary goal of the financial manager of a firm? - ✔✔To maximize owner wealth
What should be the main question a firm asks when considering any investment decision? - ✔✔Do the
benefits of this investment outweigh the costs?
What is the primary aim of personal finance goals? - ✔✔To maximize satisfaction from products
purchased and services obtained
three main tasks that a financial manager - ✔✔making investment decisions,
making financing decisions, and
managing working capital.
Making investment decisions for the firm is the most important task for the - ✔✔financial manager
DevelopmentThe business function responsible for improving and developing services and products. - ✔
✔research and development
A financial asset that can be used by a firm or individual. Examples of ... may be machinery or cash held
by a firm. - ✔✔capital
Professional managers of investment capital that typically invest in very young new ventures. - ✔✔
Venture Capitalists (VCs)
Generating cash or stock from the sales or IPO of companies in the portfolio of investments. - ✔✔
Harvest
, The entry-level position in a commercial bank is a - ✔✔teller
assess the riskiness of lending to borrowers and determining whether loans should be extended to
potential bank clients. - ✔✔credit analysts
is responsible to find and attract new clients - ✔✔personal banker
Everything that a person owns or controls, especially at death. - ✔✔Estates
An arrangement that allows a third party to hold assets on behalf of a beneficiary or beneficiaries. - ✔✔
Trusts
have to pay attention to the firm's short-term obligations. - ✔✔Financial managers
After the investment decisions are made, the financial manager has to decide how to finance such
projects. - ✔✔
Which task does a financial manager perform when choosing to obtain a loan to purchase a piece of
equipment for a new project? - ✔✔Making financing decisions
Which financial career focuses on investing capital into firms whose shares are not currently sold on any
public stock exchange? - ✔✔Private equity
Which task does a financial manager perform when assessing the costs and benefits of potential
projects? - ✔✔Making investment decisions
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