Techniques to Managing Finances
CAT Paper T10 Managing Finance
Written By: Seah
CONTENTS
Chapter 1 Cash and cash flows Chapter 2 Forecasting cash flows Chapter 3 Cash forecasting techniques Chapter 4 Cash and treasury management Chapter 5 Investing surplus funds Chapter 6 Working capital management Chapter 7 Managing payables and inventory Chapter 8 Managing receivables Chapter 9 Assessing creditworthiness Chapter 10 Monitoring and collecting debts Chapter 11 The banking system and financial markets Chapter 12 Economic influences Chapter 13 Short and medium-term finance Chapter 14 Long-term finance Chapter 15 Financing of small and medium-sized enterprises Chapter 16 Decision making Chapter 17 CVP analysis Chapter 18 Capital expenditure budgeting Chapter 19 Methods of project appraisal 2 3-5 6 7 8-9 10-11 12-13 14-16 17-18 19-20 21-22 23-24 25-27 28-32 33-34 35-37 38-39 40-41 42-45
Key areas of syllabus are source of finance (chapter 11-15), cash budgets (chapter 2), working capital management (chapter 6-7), credit management (chapter 8-10), capital investment appraisal (chapter 19) and short-term decision making (chapter 16-17). Small areas must still be considered to maximize chances of success (not only pass).
Written By: Seah 2
Chapter 1 Cash and cash flows A business which fails to make profits will go under in the long-term. However, a business which runs out of cash, even for a small period, will fail although it is profitable. Account showing trading profits are not the same as statement of cash flows as account is prepared under accrual accounting (earning basis). Cash budgets will be prepared under cash accounting (receipt and payment basis), only items that involve cash flows will be included. Cash transactions can be capital or revenue, exceptional (unusual) or unexceptional and regular or irregular. Cash flow can be defined in many ways: Net cash flow – total change in cash balances Operational cash flow – net cash flow from trading activities Priority cash flows – not
Written By: Seah
CONTENTS
Chapter 1 Cash and cash flows Chapter 2 Forecasting cash flows Chapter 3 Cash forecasting techniques Chapter 4 Cash and treasury management Chapter 5 Investing surplus funds Chapter 6 Working capital management Chapter 7 Managing payables and inventory Chapter 8 Managing receivables Chapter 9 Assessing creditworthiness Chapter 10 Monitoring and collecting debts Chapter 11 The banking system and financial markets Chapter 12 Economic influences Chapter 13 Short and medium-term finance Chapter 14 Long-term finance Chapter 15 Financing of small and medium-sized enterprises Chapter 16 Decision making Chapter 17 CVP analysis Chapter 18 Capital expenditure budgeting Chapter 19 Methods of project appraisal 2 3-5 6 7 8-9 10-11 12-13 14-16 17-18 19-20 21-22 23-24 25-27 28-32 33-34 35-37 38-39 40-41 42-45
Key areas of syllabus are source of finance (chapter 11-15), cash budgets (chapter 2), working capital management (chapter 6-7), credit management (chapter 8-10), capital investment appraisal (chapter 19) and short-term decision making (chapter 16-17). Small areas must still be considered to maximize chances of success (not only pass).
Written By: Seah 2
Chapter 1 Cash and cash flows A business which fails to make profits will go under in the long-term. However, a business which runs out of cash, even for a small period, will fail although it is profitable. Account showing trading profits are not the same as statement of cash flows as account is prepared under accrual accounting (earning basis). Cash budgets will be prepared under cash accounting (receipt and payment basis), only items that involve cash flows will be included. Cash transactions can be capital or revenue, exceptional (unusual) or unexceptional and regular or irregular. Cash flow can be defined in many ways: Net cash flow – total change in cash balances Operational cash flow – net cash flow from trading activities Priority cash flows – not