AFM131 Lecture Notes - Lecture 9: Initial Public Offering, Unsecured Debt, Cash Flow

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: David H A

Document Summary

Financial management managing resources to meet goals or objectives. Safeguarding cash assets: minimize cash on hand or access to cash, segregation of duties, bank reconciliation. The most common ways for firms to fail financially. Under-capitalization not having sufficient funds to start (kh ng v n b t u) Poor control over cash flow (qu n l cash flow k m) Inadequate expense control (chi ti u kh ng h p l ) Financial management at a private vs. public company. Private company: more control over business and financial decisions, maintain ownership of the company. Public company: less control over business and financial decisions. Short-term forecast predicting revenues, costs, and expenses for less than a year. Long-term forecast predicting revenues, costs, and expenses for more than a year: budgeting process. Budget management"s expectations for revenues and allocates specific resources. Operating (master) budget ties together all of the company"s other budgets.