August 2021 Moldir Kaiynbayeva
ACCOUNTING
&
FINANCE MODULE
CORE COURSE
IN BUSINESS
Introduction to Accounting and Finance
Week 1
Financial Accounting
Week 1
Overview of the Financial Statements
For ORGANIZATIONS (individuals, families, companies, governments),
FINANCE is
•Identifying necessary resources,
•Determining the best way to get the money to buy those
resources, and then
•Managing the resources efficiently.
BROAD definition
What is FINANCE?
What resources does the company need?
•Long-term: Land, buildings, machines
•Short-term: Cash, inventory
•Operating items: Staff, R&D, marketing
Where to obtain the money to buy those resources?
•Borrowing
•Funds from owners
•Internally-generated profits
How to manage the company’s resources once acquired?
•Timing, scheduling, budgets — interface with outsiders
•Protection, controls — organization of internal procedures
What is FINANCE?
Inside of Companies
For ORGANIZATIONS (individuals, families, companies, governments),
FINANCE is
•Determining the best way to get the money to buy
necessary resources.
NARROW definition
What is FINANCE?
ENTREPRENEURS
organizations with ideas and objectives
INVESTORS
individuals who have saved resources in the past
FACILITATORS
specialized institutions that match Entrepreneurs with
Investors
What is FINANCE?
The Players
Investors/Savers: Looking for the “best” place to protect and increase saved wealth
•Under what terms should I provide funds to a company?
•What about my “portfolio”?
Financial institutions: Gather savings from lots of investors; channel it to companies
What is FINANCE?
Outside of Companies
