AFM131 Chapter Notes - Chapter 17: Cash Flow, Accounts Payable, Accounts Receivable

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Mohsin Bashir

Document Summary

Finance: the function in a business that acquires funds for the firm and manages them within the firm. Financial management: the job of managing a firm"s resources to meet its goals and objectives: a sound financial plan and financial management are vital for the success/survival of a firm. Buying merchandise on credit (accounts payable) and collecting payments from customers (accounts receivable), are important aspects of a financial manager"s job along with keeping update on tax laws, analyze tax implications of managerial decisions, etc. Short-term forecast: forecast that predicts revenues, costs, and expenses for a period of one year or less. Cash flow forecast: forecast that predicts the cash inflows and outflows in future periods, usually months or quarters. Long-term forecast: forecast that predicts revenues, costs, and expenses for a period longer than one year, and sometimes as far as five or ten years into the future. Sales forecast : estimates the firm"s projected sales for a particular period.