C) Say in what activities financial managers are involved

B) Write down 3-5 questions about the text.

A) Supply the articles where necessary.

Financial Management explains how... financial management can help maximize the value of their firms by making better decisions in such areas as capital budgeting, choice of capital structure, and working capital management.

Financial managers also have... responsibility for deciding the credit terms under which customers may buy, how much inventory... firm should carry, how much cash to have on hand, what types of securities to issue, whether to acquire... other firms (merger analysis) and how much of the firm earnings to plough back in the business versus payout as dividends.

A successful firm usually has... rapid growth in sales, which requires investments in... plant, equipment and inventory. The financial manager must help decide on... specific assets to acquire and the best way to finance these investments. For example, should... firm finance with debt or equity, and if debt is used, should it be long-term or short-term?

In this connection, the financial manager must deal with... money and capital markets, where funds are raised and where the firm’s securities are traded. As a consequence, financial managers f many large companies are responsible for working with investors (for example, mutual funds), bond rating agencies, stock holders, and the general financial community.

Financial managers, controllers in particular, are also responsible for financial accounting – preparation of the financial statements for... firm, cost accounting – preparation of... firm’s operating budgets, and preparation of reports that the company must file the various government (local, state and federal) agencies.

One of... major documents developed and controlled by financial managers is the Enterprise Financial Plan. It comprises... requirements for financial resources and the amounts currently available and expected in... future to meet them, i.e. the estimated revenues and expenditures of an enterprise within some future period of time. The enterprise financial plan determines whether... cumulative revenues exceed the cumulative outlays at every point of time during... plan period and whether the necessary capital structure is assured.

The enterprise financial plan is composed of... revenue plan,... expenditure plan and... financing or credit plan.

Words you may need:

financial accounting – фінансовий облік

cost accounting – виробничий облік

file – представляти певний документ

cumulative – сукупний

Дата добавления: 2014-11-29