2017-01-10 175

Why study financial management?

Today, one of the main conditions for the stable functioning of any enterprise is a competently and correctly chosen strategy. entrepreneurial activity. And financial management plays a key role in creating this strategy.

Essence of financial management

Financial management is a financial science that studies methods for the effective use of a company's own and borrowed capital, ways to get the most profit with the least risk, and rapid capital growth. Financial management answers the question of how to easily and quickly turn an enterprise from uninteresting to attractive to investors.

This is a certain system of principles, forms and methods that is used to correctly regulate the financial activities of an enterprise. It is financial management that is responsible for making investment decisions and finding financial sources for them. That is, by and large, it answers the questions of where to get the money and what to do with it. The relevance of the application of financial management is also due to the fact that modern economic realities and the requirements of the world market require constant development. Today successful business cannot stand still, it must grow, expand, find new ways of self-realization.

Goals and objectives of financial management

The main goal of financial management is to maximize the value of the enterprise by increasing capital.

Detailed Goals:

1. effective functioning and strengthening of positions in a competitive market;
2. prevention of company ruin and financial insolvency;
3. achieving market leadership and effective functioning in a competitive environment;
4. achievement of the maximum growth rate of the price of the organization;
5. a stable growth rate of the firm's reserve;
6. maximum increase in profits;
7. minimizing the costs of the enterprise;
8. guaranteeing profitability and economic efficiency.

Basic concepts of financial management

A thorough knowledge of the concepts of financial management and their relationship entails the adoption of effective, balanced, profitable and rational decisions in the process of managing the financial flows of the enterprise.

Functions of financial management

Any process or activity assumes the presence of certain functions. Financial management functions are divided into 2 formats:

Financial management - what kind of profession is it?

The relevance and relevance of financial management in modern business leads to a huge demand for qualified specialists, which today significantly exceeds the supply that exists in the labor market. This suggests that a person with knowledge in the field of financial management can count not only on guaranteed employment and consistently high earnings, but also on the rapid development of a career.

So, what knowledge and skills should a specialist applying for the position of a financial manager have?

Get necessary knowledge, as well as to systematize existing knowledge without interrupting the main activity, you can take the course Financial management and the financial analysis . The first module of the course is provided free of charge.

Financial management

Financial management. Financial management and its relationship with other management functions

Financial management - managing the finances of business entities, financial analysis, planning, as well as finding and distributing capital. It covers all major areas of finance and extends to all segments of the financial market. Financial management is also a type of management activity. It is a system of influence of the subject of financial management (financial manager) on its object in order to improve the latter. In addition, financial management is a form of entrepreneurship.

Financial management is interconnected with cost accounting, marketing, and planning.

Cost accounting had a significant positive impact on the economy of enterprises. However, its possibilities in terms of administrative management are limited. Separate elements of cost accounting, in particular self-sufficiency and self-financing, control by the ruble, material responsibility, material interest, have achieved great development in a market economy. Cost accounting is necessary not only for a state enterprise in conditions of public ownership of the means of production, but also for a private enterprise, commercial organization under private ownership.

Cost accounting as a method and style of management is in many ways similar to management. However, one should not assume that cost accounting cancels or replaces management, just as management does not cancel cost accounting. There is competition here, which creates a fertile ground for the development of cost accounting and management at the same time.

Marketing means market research, marketing system. Marketing is not only the science of selling, but also of managing, it is a kind of human activity aimed at satisfying needs and requirements through exchange. In the 50s of the last century, marketing theory joined with management theory. As a result, an applied science of managing companies based on the principle of marketing has emerged, called the “market management theory”. Marketing is the concept of managing the development, production and distribution of a product. Marketing affects management, closely interacts with it and intertwines. Their interrelation guarantees the success of entrepreneurship.

Planning is a system of planned decisions of a firm, which, as a participant in the market system, is forced to obey the price mechanism, the law of supply and demand, since it cannot cancel their actions.

By applying planning, the firm eliminates the costs that it could have if all actions within the firm were performed on the basis of buying and selling. By canceling such relationships, she avoids additional costs.

Planning is one of the functions of management. Financial management brings together the planning of material, technical, labor and financial resources, ensuring their balance. Financial planning in our case has an intracompany orientation and is reflected in a special section of the business plan.

Financial management. Basic concepts financial management

Financial management as a science should be based on basic theoretical provisions that allow understanding its essence, goals, objectives, role in the activities of the enterprise and ways to improve. Financial management in an enterprise should be based on a certain concept. This is necessary because theory and practice are inseparable by definition.

In theory, the following concepts of financial management are known.

1. The concept of present value describes the patterns of business activity of the enterprise. It explains the mechanism of capital increment. Each entrepreneur, investing his initial capital, expects to receive new capital in order to reimburse the previously invested capital after a certain period of time and receive a certain share of its increment (ie, profit). Every day, an entrepreneur is forced to manage many transactions for the sale of goods (products), services, investment funds. In this regard, the manager needs to determine how expedient it is to perform these operations, whether they will be effective. The effectiveness of operations is determined by diagnosing the information contained in accounting. However, there is a contradiction between the timing, monetary value of advanced costs (investments) and economic efficiency. Based on accounting data, it is impossible to determine the effectiveness of future operations, therefore, it is necessary to additionally evaluate future operations from the standpoint of the current time.

2. The concept of entrepreneurial risk makes it possible to explain the importance and connection of financial risk with the performance of an enterprise. Every business has to make forecasts. However, the objectivity of the current assessment of the economic benefit projections depends on how accurate the forecast is. Based on statistical measurements of fluctuations, the forecast of expected economic benefits is usually made in the form of an approximate estimate of the present value, and not a single digit. The opinions of experts could be erroneous, therefore additional information and extrapolation of past events into the future is required. In order to reduce the level of risk, it is necessary to determine the required information.

3. The concept of cash flows is devoted to the issues of attracting financial resources, organizing their movement, maintaining in a certain qualitative state. In accordance with it, the financial manager should clearly determine how much cash is needed to pay off obligations, pay dividends, when an excess of cash will be received, for what period of time the organization will experience a shortage of cash. The size of the cash balance of the enterprise should be optimal. Its size depends on the decisions of management in the field of financial risk, profitability and liquidity. The cash balance on the accounts of the enterprise should provide expenses, short-term financial investments, and ensure a non-decreasing balance of funds in the account.

The concepts of financial management allow you to effectively organize practical work financial management in the enterprise. Based on them, many management tools are built to help financial managers in setting and solving financial goals and objectives.

Financial management. Tax planning as a subfunction of financial management

In the context of an inefficient taxation system, business entities are forced to look for ways to reduce the tax burden. The taxation system becomes inefficient if it ceases to perform all its functions. If the tax system begins to perform only a fiscal function (without stimulating), the efficiency of business entities directly falls. In such cases, economic entities should pursue a targeted tax policy.

The purpose of the company's tax policy is to reduce the tax burden. In this regard, one of the ways to reduce the tax burden is tax planning. Tax planning at an enterprise can be considered from a methodological and organizational point of view. This allows you to identify the specifics and purpose of tax planning in the enterprise.

From an organizational point of view, the tax planning process can be described as follows. Representatives of various management services of the enterprise participate in the process of tax planning.

The sales manager provides information on the actual terms of the transaction and on the results that are planned to be obtained after its completion. In turn, the lawyer conducts a legal analysis of the transaction procedure from the point of view of security and prepares the necessary documents for its execution, taking into account the "bottlenecks". It also helps the accountant to justify in advance the formulation and execution (accounting procedure) of the transaction and the reflection in the financial statements of its results. Further, the accountant provides calculations of various options for the financial structure of the transaction and its reflection in accounting, taking into account the norms of the current legislation and the rules of accounting and financial accounting. He also formulates possible options that require legal justification and agreement with counterparties.

From a methodological point of view, the tax planning process includes the following steps:

1) resolving the issue of the most tax-favorable location (registration) of the organization itself, its governing bodies, main production and commercial divisions, etc.;

2) the choice of the legal form of the organization and its structure, taking into account the nature and objectives of its activities;

3) correct and full use of the possibilities of tax legislation and tax benefits in determining taxable income and calculating tax liabilities;

4) resolving issues on the most rational use of working capital from a tax point of view, the allocation of profits and other savings, the choice of forms and methods of spending them.

In management theory, they implement the process of tax planning, which is implemented when creating a new enterprise, and the process of tax planning, which is implemented within the framework of a functioning enterprise. In practice, when the enterprise is already functioning, the question of changing the location of the enterprise and changing the legal form, as a rule, is not raised. At functioning enterprises, tax planning is organized in the following sequence:

Formation of the tax field;

Formation of a system of contractual relations;

Selection of typical business transactions, etc.

Financial management. The Role of Control in Financial Management

Control in financial management is a check of the organization of financial work, the execution of financial plans, etc. With the help of control, information is collected on the use of financial resources and on the financial condition of the object, additional financial reserves are identified, and changes are made to financial programs. Control involves the analysis of financial results. Analysis, in turn, is part of the financial planning process. Thus, control is the reverse side of financial planning and should be considered as its integral part.

Financial control is a system for monitoring and verifying the financial activities of a managed entity in order to assess the validity and effectiveness decisions taken, identifying deviations from the approved standards and taking measures to eliminate them.

The objectives of financial control can be expressed in providing:

growth of efficiency of production and expenditure of funds;

compliance with the current legislation in the field of taxation;

the correctness of accounting;

the correctness of the preparation and execution of the budget;

checking the status and efficiency of the use of enterprise resources;

identification of reserves for the growth of financial resources;

the correctness of foreign exchange transactions.

Financial control functions include:

1) analysis - includes a range of actions for analysis, study of the implementation of the current legislation in terms of the use of state budget funds; identification of deviations in the formation of income and expenses of the subject of financial activity; deviations in the sphere of financial activities of state institutions (ministries, departments, other bodies); analysis of the causes of deviations (research of the facts that led to this or that deviation, identification of the guilty persons);

2) adjustment - includes the development of proposals to eliminate the identified violations of financial and economic activity enterprises;

3) preventive function - consists in the development of measures to prevent violations, strengthen financial discipline, increase the efficiency of financial control, improve control work, develop new methods and methods of control based on the materials of summarizing the results of inspections. In modern conditions, the priority direction is the preventive function aimed at preventing violations and abuses, improving the means of preventing violations, promptly responding to illegal behavior in order to prevent possible violations and abuses, suppressing these actions, identifying the perpetrators.

The implementation of financial control at the enterprise is also associated with the detection of deviations from accepted standards and violations of the principles of legality, efficiency and economy of spending material resources at the earliest possible stage.

This allows you to take corrective measures, bring the perpetrators to justice, receive compensation for the damage caused, and take measures aimed at preventing such violations in the future.

Financial management. Investment policy as an object of financial management

The initial prerequisite for the formation of investment policy is the overall strategy of the financial management of the enterprise. In relation to it, the investment policy is of a subordinate nature and must be consistent with it in terms of goals and stages of practical implementation.

Stages of investment policy formation:

determination of the period of investment policy formation;

formation of strategic goals of investment policy;

development of the most effective ways to implement the strategic goals of investment activities;

concretization of the investment policy by the periods of its implementation;

assessment of the developed investment policy of the enterprise.

The objects of investment activity can be:

newly created and modernized fixed assets and working capital in all sectors of the national economy;

securities (shares, bonds, etc.);

targeted cash deposits;

scientific and technical products and other objects of property;

property rights and intellectual property rights.

The law of the Russian Federation prohibits the investment of funds in objects, the creation and use of which do not meet the requirements of environmental, sanitary and hygienic and other standards established by law, or damage the legally protected rights and interests of citizens, legal entities or the state.

All investors have equal rights to carry out investment activities. The investor independently determines the volumes, directions, sizes and effectiveness of investments. He, at his discretion, attracts legal entities and individuals on a contractual, mainly competitive basis (including through contract tenders) for the implementation of investments. An investor who is not a user of objects of investment activity has the right to control their intended use and exercise other rights provided for by the agreement in relations with the user of such objects. The investor is granted the right to own, use and dispose of the objects and results of investments, including trading and reinvestment. An investor can transfer his rights to investments under an agreement to legal entities and individuals, federal and municipal authorities.

When developing the investment policy of an enterprise, the legal environment and the economic situation in the country are of great importance.

The state guarantees the stability of the rights of investors. In the event of the adoption of legislative acts, the provisions of which restrict their rights, the relevant provisions may not enter into force earlier than one year from the date of their publication. In the event of the adoption of legal acts that violate the legitimate rights and interests of investors, losses, including lost profits, are compensated by state bodies by decision of arbitration courts.

The state of the domestic economy, which largely determines the investment climate in the country, is the main condition for the successful implementation of the enterprise's investment policy at each stage.

Financial management. Justification of management decisions in the management of direct investments and financial investments

Direct investments are understood as investments in the authorized capital of enterprises, carried out both through the acquisition of equity securities - shares, and through the acquisition of shares.

Management of direct investments (investment projects) includes:

1) drawing up investment projects;

2) evaluation of investment projects;

3) direct implementation of investment projects.

Financial investments are investments in securities, authorized capitals of other organizations, also in the form of loans provided to other organizations.

One of the key points in making investment decisions is the evaluation of the effectiveness of the proposed investment. Therefore, for managers making such decisions, both the practical mastery of modern methods for evaluating the effectiveness of investments and a deep understanding of the theoretical concepts underlying them are of great importance.

The main methods for evaluating the investment activity program are:

a) calculation of the payback period of investments;

b) calculation of return on invested capital;

c) determination of the net present effect (net present value (NPV).

d) calculation of the level of return on investment (RI).

These methods are based on a comparison of the volume of proposed investments and future cash flows. Methods can be based both on the accounting value of cash receipts and on discounted income, taking into account the time component of cash flows.

Financial management. Financial policy in the field of formation of non-current assets

Non-current assets of an enterprise are a part of the property of an enterprise used as means of labor in the production of products, performance of work or provision of services, or for managing an organization for a period exceeding 12 months and capable of generating economic benefits (income in the future), while the organization is not expected to subsequent resale of these assets.

Non-current assets include:

· intangible assets;

results of research and development;

fixed assets;

Profitable investments in material values;

financial investments, the return of which is expected not earlier than in a year;

· other assets with signs of non-current assets.

The process of managing the operating non-current assets of the enterprise is part of the overall process of managing the assets of the enterprise, organizing the financial support for their acquisition, renewal and high efficiency of their use.

In the system of formation and implementation of the policy of managing the operational non-current assets of an enterprise, one of the most important functions of financial management is to ensure their timely and effective renewal, financial management of the renewal of non-current assets.

The sequence of development and adoption of management decisions to ensure the renewal of the operating non-current assets of the enterprise is characterized by the following main stages:

1. the formation of the required level of intensity of renewal of individual groups of operating non-current assets of the enterprise. The intensity of renewal of operating non-current assets is determined by two main factors - their physical and obsolescence. In the process of these types of wear and tear, non-current assets gradually lose their original functional properties and their further use in the operating process of the enterprise becomes either technically impossible or economically unfeasible.

2. Determination of the required volume of renewal of operating non-current assets in the coming period. Updating the operating non-current assets of an enterprise can be carried out on a simple or extended basis, reflecting the process of simple or extended reproduction.

Simple reproduction of operating non-current assets is carried out as they are physically and morally depreciated within the amount of accumulated depreciation (depreciation fund funds).

Extended reproduction of operating non-current assets is carried out taking into account the need to form new types of them not only at the expense of accumulated depreciation, but also at the expense of other financial sources (profit, long-term financial loans, etc.).

The choice of the most effective forms of renewal of individual groups of operating non-current assets. Specific forms of renewal of certain groups of operating assets are determined taking into account the nature of their planned reproduction.

Determining the cost of updating individual groups of operating non-current assets in the context of its various forms.

5. Optimization of the total volume and composition of the operating non-current assets of the enterprise.

Based on the results of the analysis, the managers of the enterprise identify reserves for a possible increase in the efficiency of the use of assets in the activities of the enterprise. These include: reducing the presence of unnecessary unused equipment, reducing, if possible, the part of passive equipment, increasing the productivity of the active part of the equipment, increasing the shift ratios of equipment, reducing unscheduled downtime, etc.

6. Ensuring the efficiency of the use of operating non-current assets of the enterprise using financial methods.

A system of measures aimed at increasing the profitability ratios and capital productivity of assets is being developed. An increase in the efficiency of their use in the operating process will reduce the need for assets, reduce the need for sources of financing and increase the pace of economic development of the enterprise through the efficient use of its own financial resources.

Financial management. Financial policy in the field of current assets management

Current asset management is the most extensive part of financial management operations. This is due to a large number of elements of their internal material and financial composition, requiring the individualization of management; high dynamics of transformation of their species; a high role in ensuring the solvency, profitability and other target results of the financial activity of the enterprise.

The current asset management policy of the enterprise is developed according to the following main stages.

1. Analysis of current assets of the enterprise in the previous period.

At the first stage of the analysis, the dynamics of the total volume of current assets used by the enterprise is considered.

At the second stage of the analysis, the dynamics of the composition of the current assets of the enterprise in the context of their main types is considered. Analysis of the composition of the company's current assets by their individual types allows us to assess the level of their liquidity.

At the third stage of the analysis, the turnover of certain types of current assets and their total amount are studied. This analysis is carried out using indicators - the turnover ratio and the period of turnover of current assets.

At the fourth stage of the analysis, the profitability of current assets is determined, and the factors determining it are examined. In the process of analysis, the profitability ratio of current assets, as well as the Dupont Model, are used.

At the fifth stage of the analysis, the composition of the main sources of financing of current assets is considered - the dynamics of their amount and share in the total volume of financial resources invested in these assets; the level of financial risk generated by the current structure of sources of financing of current assets is determined.

The results of the analysis allow us to determine the overall level of efficiency in the management of current assets at the enterprise and identify the main directions for its increase in the coming period.

2. Definition of fundamental approaches to the formation of current assets of the enterprise. Such principles reflect the general ideology of the financial management of an enterprise from the standpoint of an acceptable ratio of the level of profitability and the risk of financial activity. With regard to current assets, they determine the choice of a certain type of policy for their formation.

3. Optimization of the volume of current assets. Such optimization should proceed from the chosen type of policy for the formation of current assets, providing a given level of correlation between the effectiveness of their use and risk.

4. Optimization of the ratio of the constant and variable parts of current assets. The need for certain types of current assets and their amount as a whole varies significantly depending on the seasonal characteristics of the implementation of operating activities.

5. Ensuring the necessary liquidity of current assets.

6. Ensuring an increase in the profitability of current assets.

7. Ensuring the minimization of losses of current assets in the process of their use.

8. Formation of the principles of financing certain types of current assets.

9. Formation of the optimal structure of sources of financing of current assets. In accordance with the previously defined principles of financing, in the process of developing a policy for managing current assets, approaches are formed to select a specific structure of sources of financing for their growth, taking into account the duration of individual stages of the financial cycle and assessing the cost of attracting certain types of capital.

Test 1. Financial management is:
a) public administration finance;
b) management of financial flows of a commercial organization;
c) management of financial flows of a non-profit organization.
Test 2. The authors of the economic concept "The market value of an enterprise and the cost of capital do not depend on the capital structure" are:
a) F. Modigliani and M. Miller;
b) E. Altman;
c) M. Gordon and D. Lintner.
Test 3. The main concepts of financial management include the concepts:
a) a trade-off between return and risk;
b) cash flow;
c) cost of capital;
d) cost alternatives;
e) all options are correct.
Test 4. The organization's financial management system is:
a) financial policy;
b) financial strategy;
c) financial tactics;
d) financial mechanism.
Test 5. The "tits in the hands" theory states:
a) the value of the organization is maximized by the payment of dividends;
b) the value of the organization does not depend on the dividend policy;
c) the dividend policy does not affect the rate of return required by investors;
d) investors prefer to receive income from capital gains, rather than in the form of dividends.
Test 6. Financial strategy is:
a) setting a long-term course in the field of corporate finance, aimed at achieving the mission;

b) solving the problems of a particular stage in the development of finance;
c) development of new methods of distribution of funds.
Test 7. Name the property that is uncharacteristic for the organization:
a) exists independently of its owners;
b) unlimited liability of the owner to the organization;
c) the right to a share of ownership is confirmed by a share in its share capital;
d) shares can be transferred to other persons.
Test 8. Long-term goal of the organization:
a) profit maximization;
b) cost minimization;
c) cost growth;
d) maximizing shareholder dividends.
Test 9. Who is a financier in a small business:
a) Vice President for Finance;
b) director of economics;
c) financial director;
d) an accountant.
Test 10. Director's option is:
a) rewarding the manager for successful work a certain number of free shares;
b) encouraging the manager for successful work with a certain number of shares that he can buy at a price that was several years ago;
c) rewarding the manager for successful work in the form of an allocated monetary fund;
d) the priority of the sale of shares in the event of a tender.
Test 11. If the organization goes public for the first time then:
a) the offer price will be based on the current share price or bond yields;
b) bankers must estimate the equilibrium price at which the shares will be sold after the issue;
c) the offer price is determined by the organization itself, which goes public;
d) the offer price will be determined by the entity going public, plus a few points higher to pay the investment banker.
Test 12. An underwriter is:
a) an investor who is not directly involved in management;
b) an investor who is directly involved in the management;
c) a broker selling shares of an organization on the secondary market;
d) a banking house that prepares a new issue of securities.
Test 13. What is not included in the rights of owners of ordinary shares:
a) the owners are the owners of ordinary shares;
b) the right to make specific management decisions;
c) the right to elect management, which in turn elects senior staff to manage production;
d) control over the organization.
Test 14. Financial policy is:
a) purposeful use of finance;
b) aggregate financial relations;
c) the financial mechanism as an integral part of the management system.
Test 15. What is included in the equity of the organization:
a) the value of preferred shares at par;
b) the cost of the bond issue;
c) paid-in capital;
d) the cost of fixed assets.
Test 16. Paid-in capital is:
a) the cost of the initial issue of shares;
b) the interest that the organization pays on debts;
c) working capital;
d) funds received in excess of par value when the entity sells new shares.
Test 17. What is not included in the equity of the organization:
a) retained earnings;
b) the value of ordinary shares at par;
c) the value of preferred shares at par;
d) paid-in capital.
Test 18. The weighted average cost of capital is:
a) the sum of the values ​​of the components of the capital structure, divided by their number;
b) the sum of the values ​​of the components of the capital structure after tax, multiplied by their shares in the balance sheet of the organization;
c) the sum of the values ​​of individual components of the capital structure, such as preferred and ordinary shares, retained earnings.
Test 19. Components of the capital structure:
a) current assets and non-current assets;
b) long-term liabilities, preferred shares, ordinary shares, retained earnings;
c) current assets, equipment, buildings and structures, land.
Test 20. The marginal cost of capital is:
a) change in the weighted average cost due to additional investments;
b) the maximum cost of new investments;
c) the cost of additional capital.
Test 21. The decision to increase the authorized capital of a joint-stock company is made:
a) general meeting shareholders;
b) by the board of directors only unanimously (except for retired members);
c) 2/3 of the votes of the members of the board of directors;
d) the board of directors and the board of directors of the JSC.
Test 22
a) is allowed in exceptional cases;
b) allowed with the consent of the board of directors;
c) is not allowed.
Test 23. Minimum size reserve fund of JSC in accordance with the Federal Law "On Joint Stock Companies" (as amended and supplemented) must be:
a) 5% of the authorized capital;
b) 15% of the authorized capital;
c) 50% of own funds.

Test 24. Which of the following funds are the cheapest for the organization:
a) accounts receivable;
b) bank loan;
c) accounts payable;
d) bond issue.
Test 25. The organization's equity includes:
a) authorized capital;
b) reserve fund;
c) a building;
d) retained earnings;
e) finished products;
e) accounts receivable.
Test 26. The assets of the organization include:
a) losses;
b) accounts payable;
c) additional capital;
d) patents;
e) short-term bank loans;
e) non-current funds.
Test 27. Active fixed assets include:
a) vehicles;
b) equipment;
c) bridges;
d) raw materials; e) buildings; e) patents.
Test 28. The structure of working capital is:
a) a set of elements that form revolving funds and circulation funds;
b) the ratio of individual elements of negotiable production assets and circulation funds;
c) a set of objects of labor and means of labor;
d) the totality of monetary resources.
Test 29. What functions do working capital perform:
a) distribution and control;
b) production and settlement;
c) regulatory and fiscal;
d) all answers are correct.

Test 30. Signs of the classification of fixed assets:
a) industry;
b) by appointment;
c) by type;
d) by time period.
Test 31. Slowly realizable current assets should include:
a) raw materials;
b) accounts receivable;
c) materials;
d) work in progress.
Test 32. Tangible assets are:
a) trademark, patents;
b) bonds, shares;
d) all answers are correct.
Test 33. Intangible assets are:
a) trademark, patents;
b) bonds, shares;
c) buildings, structures, equipment, land;
d) all answers are correct.
Test 34. Financial assets are:
a) trademark, patents;
b) bonds, shares;
c) buildings, structures, equipment, land;
d) all options are correct.
Test 35. The concept of "real estate" includes:
a) cash;
b) inventories;
c) finished products in warehouses;
G) land plot.
Test 36. Which of the listed securities cannot be acquired by legal entities:
a) certificates of deposit;
b) savings certificates;
c) government bonds;
d) corporate shares.
Test 37. Which exchange serves the securities market:
a) currency;
b) stock;
c) commodity;
d) all options are correct.
Test 38
a) for management;
b) to make a profit;
c) to receive a fixed dividend;
d) be elected to the board of directors.
Test 39. The main indicators that affect the efficiency of the organization's securities portfolio are:
a) the term of the investment;
b) profitability;
c) liquidity;
d) risk;
e) the size of the investment;
e) All options are correct.
Test 40. The main participants in the securities market are:
a) investors;
b) issuers;
c) insiders;
d) stock exchanges;
e) depositories;
e) registrars.
Test 41. Derivative securities are:
a) options;
b) shares; and
c) government short-term bonds;
d) warrants;
e) futures.

Test 42
a) the capital market;
b) market, increase capital on the coder, issue new securities;
c) the market where investors buy and sell securities and other financial instruments;
d) long-term debt markets.
Test 43. The cost of a preferred share is determined as:
a) the amount of dividends for the entire period of existence of the share;
b) the ratio of the dividend on a preferred share to its current price;
c) a dividend next year, multiplied by its growth rate;
d) the ratio of the dividend to the nominal price of the preferred share.
Test 44. The cost of ordinary shares of the new issue:
a) higher than the value of retained earnings;
b) is equal to the value of retained earnings;
c) below the value of retained earnings;
d) is equal to the cost of issuing a new issue.
Test 45
a) the coupon rate of the bonds;
b) coupon rate minus taxes;
c) real income from bonds;
d) real income from bonds, net of taxes.
Test 46
a) bonds that can be exchanged for a fixed number of shares of the issuing organization;
b) coupon payments, which depend on the amount of profit;
c) which allow the holder to buy the shares at a set price;
d) which allow the investor to receive a fixed percentage of the face value.
Test 47
a) the same terms of validity;
b) fixed payments;
c) both bring income in the form of an annuity;
d) both are debt obligations.

Test 48. The real yield on a bond depends on:
a) coupon rate
b) nominal price;
c) maturity date;
d) the market price at which the bond was bought.
Test 49. An ordinary share as a security certifies:
a) ownership of a part of the profit distributed by JSC;
b) participation in the management of a joint-stock company;
c) the obligation of the issuer to repay the debt after a certain time;
d) the right of the investor to receive a certain percentage of the nominal value of the security in the form of remuneration for the funds provided;
e) the possibility of acquiring new shares of this JSC.
Test 50
a) the debtor;
b) creditor;
c) acceptor;
d) remittance.
Test 51. Which of the following statements are true:
a) the settlement price of an ordinary share is equal to the discounted stream of future earnings per share;
b) the settlement price of an ordinary share is equal to the present value of earnings per share, assuming the entity is not growing, plus the net present value of future growth prospects;
c) the settlement price of an ordinary share is equal to the discounted stream of future dividends plus the present value of the expected return on capital gains per share;
d) there is no correct answer.
Test 52. What does not apply to long-term debt:
a) urgent loans;
b) bonds;
c) ordinary shares;
d) bonds with early redemption.

Test 53. Similar features of preferred and ordinary bonds:
a) owners have the same rights in making decisions;
b) fixed payments;
c) the same life span;
d) both bring income in the form of an annuity.
Test 54
a) today's estimate, multiplied by the discount factor;
b) today's valuation divided by one plus the interest rate to the t power;
d) there is no correct answer.
Test 55
a) stock markets;
b) markets for goods and services;
c) debt markets with a maturity of up to one year;
d) bond markets.
Test 56
a) the cash flow of investments;
b) a series of payments for a certain period;
c) operating cash flow;
d) a series of payments of equal value for a certain period.
Test 57
a) finding a future estimate of today's payment;
b) today's estimate of future payments discounted at a certain rate;
c) today's valuation multiplied by one, plus the interest rate to the t power;
d) there is no correct answer.
Test 58. Discounting is:
a) the process of bringing the future value of money to their present value;
b) the process of bringing the present value of money to the future;
c) there is no correct answer.
Test 59
a) long-term debt and equity markets;
b) mortgage markets;
c) markets for consumer goods and services;
d) debt markets with a maturity of up to one year.
Test 60. Risk is:
a) the likelihood of an event associated with possible financial losses or other negative consequences;
b) the risk of negative consequences associated with production, financial and investment activities;
c) all answers are correct.
Test 61. What is operational risk:
a) the risk associated with financial activities;
b) the risk associated with fixed costs;
c) the risk associated with borrowed funds;
d) the risk associated with the forecast of future income from the main activity.
Test 62
a) consumption fund;
b) authorized capital;
c) additional capital;
d) accumulation fund;
e) reserve fund.
Test 63. Risk management methods include:
a) self-insurance;
b) hedging;
c) diversification;
d) certification;
e) All answers are correct.
Test 64
a) degree of use variable costs in the operations of the organization;
b) the degree of use of constant payments on debt and preferred shares;
d) the degree of use of lease payments;
e) there is no correct answer.
Test 65. Financial risk is:
a) the risk associated with financial dependence;
b) risk associated with activities;
c) the risk associated with fixed costs;
d) the risk associated with a change in the selling price.
Test 66
a) the degree of use of variable costs;
b) the degree of use of constant payments on the debt;
c) degree of use fixed costs in the operations of the organization;
d) the degree of use of lease payments.
Test 67. What is the difference between planning and forecasting:
a) planning considers only the most probable events and outcomes, while forecasting considers less probable, but possible events;
b) planning considers both the most probable events and less probable, but possible events; forecasting - only the most probable events and results;
c) planning uses probabilistic-statistical methods, and forecasting - normative methods;
d) planning requires information for a large number of previous years; information for one previous year is sufficient for forecasting;
e) there is no correct answer.
Test 68
a) planning the production program;
b) planning of investment projects;
c) planning decisions on funding sources;
d) planning investment and financing decisions.

Test 69
a) planning of investment projects;
b) Optimization of the production program;
c) development of the planned balance of the organization;
d) profit and loss planning;
e) All answers are correct.
Test 70
a) non-linearity of the criterion and linearity of constraints;
b) linearity of the criterion and non-linearity of constraints;
c) negativity of variables;
d) linearity of the criterion and linearity of constraints.
Test 71 financial models:
a) accounting vision of the world;
b) making optimization decisions;
c) simplicity and practicality;
d) all answers are correct.
Test 72. What are the disadvantages of financial models:
a) simplicity;
b) lack of optimization of financial decisions;
c) practicality;
d) automation of calculations.
Test 73
a) the basis of the linear programming model;
b) intersectoral balance;
c) the basis of financial models;
d) statistical methods.
Test 74
a) budgeting;
b) management of own capital;
c) financial planning for a period of more than a year;
d) tactical financial planning.
Test 75 industrial purpose:
a) consumption fund;
b) an accumulation fund;
c) reserve fund;
d) additional capital.

Test 76. The concept of "investment project" is given:
a) in the Federal Law "On investment activities in the Russian Federation, carried out in the form of capital investments";
b) in the Federal Law "On Foreign Investments in the Russian Federation";
c) in the Federal Law "On the Development Budget of the Russian Federation";
d) in the Civil Code of the Russian Federation.
Test 77. What external sources can the organization attract to finance capital investments:
a) reinvested profits;
b) depreciation charges;
c) working capital;
d) bank loan;
e) budget allocations.
Test 78
a) in accounting for the functionality of fixed assets and intangible assets;
b) ensuring the reproduction of fixed assets and intangible assets;
c) reflecting the costs of acquiring non-current and current assets in the cost of production;
d) there is no correct answer.
Test 79. Which of the stages of investment decision making is the most important:
a) preparing a net cash flow;
b) determination of the discount rate;
c) calculation of efficiency indicators of investment flows;
d) sensitivity analysis.
Test 80. Capital investments are:
a) financing the reproduction of fixed assets and intangible assets;
b) investing money in assets that bring the maximum income;
c) long-term investment of funds in financial investments;
d) there is no correct answer.
Test 81. Forecasting is the basis of planning:
a) operational;
b) current;
c) promising;
d) all answers are correct.
Test 82. What is the essence of the "golden rule" of financial management:
a) the amount received today is greater than the same amount received tomorrow;
b) income increases as risk decreases;
c) the higher the solvency, the lower the liquidity;
d) all answers are correct.
Test 83
a) a constant dividend payout ratio;
b) constant cash dividends per share;
c) the planned growth rate of dividends;
d) regular constant quarterly dividends plus additional payments at the end of the year when income is high enough or investment needs are small.
Test 84. Financial intermediaries are an intermediate link between.
a) organization and bank;
b) between borrowers and creditors;
c) between buyers and sellers;
d) all answers are correct.
Test 85
a) equality of earnings per share in different funding options;
b) the number of products, when production costs are equal to the income from their sale;
c) the number of products, when the income from their sale exceeds the cost of production;
d) the number of products, when profit before interest and taxes is positive.
Test 86. Market value ratios correlate: a) the level of liquidity and the value of the organization;

b) the price of a share with its profits and the book value of one share;
c) profitability of products and profitability of assets;
d) the initial and residual value of fixed assets;
e) there is no correct answer.
Test 87. Net profit is:
a) income minus variable and fixed costs;
b) income minus variable costs;
c) income minus all costs, interest and taxes;
d) income minus all costs and interest.
Test 88. Asset management ratios allow you to determine:
a) how effectively the company manages its assets;
b) the level of profitability of the company;
c) the level of profitability of the company;
d) how liquid the company is.
Test 89. Which of the following formulas is correct for the current ratio:
a) (Cash + Securities) / Current Liabilities
b) (Current Assets - Inventory Costs) / Current Liabilities
c) Current Assets / Current Liabilities
d) Sales Volume / Total Assets
Test 90. The liquidity ratio shows the ratio:
a) assets and liabilities;
b) current assets and its current liabilities;
c) non-current assets and long-term liabilities;
d) current assets and cost of fixed assets.
Test 91. The financial ratios of the organization are compared:
a) with financial ratios the best organization industries;
b) with financial ratios of the worst organization in the industry;
c) with average industry coefficients of the industry;
d) with the best financial ratios of previous years.

Test 92. The capital structure ratio reflects:
a) the ratio between long-term and short-term debt;
b) the degree of financing of the company at the expense of borrowed funds;
c) the inability of the organization to repay debt obligations;
d) the ratio between short-term debt and share capital.
Test 93. Marginal income is defined as:
a) the ratio of sales proceeds to sales profits;
b) the difference between revenue and variable costs;
c) the amount of profit from sales and fixed costs;
d) the product of the rate of marginal income and fixed costs;
e) there is no correct answer.
Test 94. The ratio of profit from sales to sales revenue, in percentage terms, is:
a) liquidity;
b) solvency;
c) maneuverability;
d) product profitability;
e) profitability of sales.
Test 95. Indicators characterizing the qualitative state of fixed assets are:
a) wear factor;
b) shelf life;
c) renewal factor;
d) retirement rate;
e) liquidity ratio;
f) coefficient of maneuverability;
g) All answers are correct.
Test 96. Liquidity is:
a) the entity's ability to pay its obligations;
b) the ability to organize effective activities;
c) the ability to transform various assets into cash;
d) there is no correct answer.
Test 97
a) capital-labor ratio;
b) capital intensity;
c) disposals;
d) workload of fixed assets.
Test 98. Profit is an indicator:
a) profitability of production;
b) production efficiency;
in) economic effect;
d) all answers are correct.
Test 99. The cost of production is:
a) the cost of raw materials, materials, wages to employees;
b) the cost of production and sales of products;
c) the cost of financing investment projects;
d) the cost of acquiring securities.
Test 100. The method of direct counting in profit planning is based on:
a) determining profit for the entire range of sold products, taking into account the balance of unsold products;
b) calculation of changes in the wholesale prices of industry in the planning period;
c) comparison of basic and planned indicators of profit.
d) the lending rate of capital.
Test 101 total amount costs are:
a) financial leverage;
b) production lever;
c) profitability threshold;
d) margin of financial strength.
Test 102. What does the payback period indicator take into account:
a) cash flows after the payback period;
b) the effect of the time value of money;
c) the degree of risk inherent in the project;
d) the time needed to cover the initial costs of the project.

Test 103 financial leverage- this is:
a) the amount of borrowed funds used per unit of own funds;
b) the difference between the gross return on assets and the average interest on a loan;
c) the difference between the amount of own and borrowed funds;
d) there is no correct answer.
Test 104. The impact on the amount of profit due to changes in the ratio of fixed and variable costs is:
a) operating leverage;
b) financial leverage;
c) the effect of financial leverage.
Test 105
a) ignoring the time value of money;
b) ease of understanding, ease of use;
c) ignoring cash flows beyond the payback period;
d) decision in favor of short-term investments.
Test 106. Which indicator characterizes the use of borrowed funds and influences the change in the profitability ratio equity:
a) production leverage;
b) the effect of financial leverage;
c) margin of financial strength;
d) operating leverage.
Test 107
a) additional profit received from the growth in the volume of proceeds from sales at constant conditionally fixed costs;
b) profit received from investment activity;
c) additional profit received from the growth of sales proceeds at constant mixed costs;
d) there is no correct answer.
Test 108
a) shares;
b) bonds;
c) checks;
d) bills.
Test 109. The sources of dividend payment in accordance with the current legislation of the Russian Federation are:
a) net profit current year;
b) retained earnings of previous years;
c) gross profit;
d) proceeds from sales;
e) All answers are correct.
Test 110. What is the source of payment of dividends on shares:
a) gross profit;
b) net profit;
c) proceeds from the sale of products;
d) additional fund;
e) retained earnings.
Test 111. Which approach corresponds to the residual policy of dividend payments:
a) conservative;
b) moderate;
c) aggressive;
d) all answers are correct.
Test 112. Formation of accounting policy is assigned to:
a) chief accountant;
b) chief accountant together with a representative of the legal service;
c) leader;
d) all answers are correct.
Test 113. What cost elements are variable costs:
a) the cost of raw materials;
b) fuel costs;
c) rent;
d) depreciation;
d) piecework wages.
Test 114. Accounts receivable is:
a) financial method;
b) financial instrument;
c) financial mechanism;
G) financial risk.
Test 115
a) the organization does not have the right to pay dividends from the authorized capital;
b) the organization does not have the right to pay dividends if it is insolvent;
c) long-term capital gains are subject to income tax;
d) organizations pay taxes only on 50% of dividends received from other organizations.
Test 116. The turnover of receivables is:
a) the ratio of sales proceeds to average receivables;
b) the ratio of doubtful receivables to receivables;
c) the ratio of the duration of the analyzed period to receivables;
d) the ratio of current assets to accounts receivable;
e) there is no correct answer.
Test 117
a) mortgage;
b) leasing;
c) monitoring;
d) forfaiting;
e) All answers are correct.
Test 118. The bank has the right to write off funds from the accounts of the organization:
a) at its own discretion;
b) on the basis of settlement documents issued to the bank - recipient of funds;
c) by order of the account holders, except as provided by law.
Test 119. A financial reporting document that reflects the sources of cash formation and the direction of their use in monetary terms at a certain date is:
a) a statement of financial results;
b) profit and loss statement;
c) cash flow statement;

d) balance sheet;
e) All answers are correct.

Test 120. What applies to the main types of financial statements:
a) balance sheet;
b) inventory report;
c) profit and loss statement;
d) overhead expense report;
e) cash flow statement;
f) report on wages.
Test 121
a) primary observation;
b) logistics;
c) cost measurement;
d) modeling;
e) forecasting;
f) the final generalization of the facts of economic activity.
Test 122. What is the essence of financial control:
a) in exercising control over the formation, distribution and use of monetary funds;
b) control over work financial departments;
c) preparation of financial statements for submission to public financial authorities.
Test 123. Bankruptcy is:
a) financial insolvency recognized by the court;
b) financial insolvency recognized by creditors;
c) inability to satisfy the claims of creditors in deadlines;
d) there is no correct answer.
Test 124. The system of methods for studying the state of the stock market, based on the study of trends in the dynamics of the main indicators, is:
a) technical analysis;
b) fundamental analysis;
c) SWOT analysis;
f) financial analysis.
Test 125
a) consulting;
b) engineering;
c) trust;
d) all answers are correct.

Financial management- this is a direction that deals with the formation of capital in a company, and also deals with the issues of its rational use in order to increase profits.

The concept of financial management

Today, financial management is a cumulative concept that consists of several areas:

• higher computing in finance;
• budget analysis;
• analysis of invested funds;
• work with risks;
• crisis management;
• valuation of the organization's shares.

As a management activity, it is customary to consider from three perspectives:

• organization budget management;
• government;
• entrepreneurial activity.

The answer to the question of what financial management studies is very simple - the management of the enterprise's budget, its competent management, the distribution of funds, and in addition, the analysis and evaluation of the existing scheme for working with capital.

History of financial management

Financial management begins its history in the United States at the beginning of the twentieth century. Initially, he dealt with the budgeting of young companies, later the same area included financial investments in new directions of development, as well as problems that could lead to bankruptcy.

It is believed that the first significant contribution to science was made by Markowitz. In the fifties of the last century, he developed a portfolio of tools at the level of theory. Two years later, the trio of scientists Sharpe, Lintner and Mossin, based on the developments of Markowitz, created an asset valuation method. It can be used to compare the risks and returns of a particular organization. Further work in this area have allowed the creation of its range of tools that help assess pricing, the market and other necessary business areas.

The next stage of development was the development of Modigliani and Miller. They came to grips with the study of the composition of capital, as well as the cost of possible funding flows. In 1985, the book "The Cost of Capital" was published, which became a kind of frontier.

"Cost of Capital" reveals the theory of the portfolio of financing instruments and capital structure. In a simplified way, we can say that the book allows you to get answers to the question - where to get money and where to invest it wisely.

Theoretical foundations and basic concepts of financial management

The finances of any company are a system of economic relations inside and outside of it. In other words, the relations arising from the use of monetary resources relate to financial activities.

Each budget has its own specifics, which depends on many parameters - the volume, its structure, the duration of the production cycle, costs, economic conditions and even climatic aspects.

What role does financial management play in an organization?

Financial management is a system of work with the budget of an enterprise. It, like any system, has its own methods, forms and methods of management. Any decision is made after collecting and processing the necessary information.

It is quite obvious that it is impossible to use finances effectively, and it is impossible to get them before without a well-developed system for managing them.

It is worth noting that financial management in an enterprise is the most important type of management, since the competitiveness and stability of a company in today's unstable market depends on its effectiveness (see).

financial mechanism

Financial management is carried out with the help of a mechanism, which in turn includes methods for the formation, planning and stimulation of work with monetary resources.

The financial mechanism is divided into four components:

1. Control of the enterprise by the state.
2. Market regulation.
3. Internal regulation.
4. Techniques and methods of a specific nature, developed after receiving information and its interpretation.

Financial management as a system is divided into two subsystems - the subject and the object.

An object- this is what the activity is aimed at. The objects of financial management are the money of the enterprise, its turnover, as well as monetary relations between different structures of one enterprise.

Subjects of financial management This is where all activity comes from. Namely, this is a group of persons or one manager who processes the flow of information and develops a management system. In addition, this person is responsible for monitoring and evaluating the effectiveness of the chosen strategy. Also in his field of activity is risk assessment and everything related to income and expenses.

Goals and objectives of financial management

Goals and objectives are two interrelated concepts. Generally speaking, the task always follows from the goal. The goal is a more global action, the achievement of which is carried out by solving specific problems. Thus, the goal has a large extent in time, and the task is small. The goals and objectives of financial management always go side by side, and one cannot be achieved without the other.

For each goal, there are usually several tasks that help to achieve it.

Objectives of financial management:

• growth in the value of the organization in the market;
• increase in company income;
• consolidation of the organization's position in the current market or the capture of new territories;
• avoiding large financial outlays or bankruptcy;
• increasing the material well-being not only of the company's management, but also of employees;
• realization of the opportunity to invest the company's budget in new areas, for example, science.

The most common tasks of financial management:

1. Growth in the company's market value. In order for the company's shares to grow, it is necessary to achieve strong market positions. To do this, it is necessary to establish a competent work of financing not only the economic part. An important point is investing in profitable projects or areas. In addition, it is necessary to take care of optimizing the company's financial affairs and attracting budgeting sources not only through its own profit (see).
2. Optimization financial flows companies. Here the problem is solved by a competent approach to solvency and liquidity. All free finances of the company should be directed to the business in order to exclude the possibility of their depreciation. In addition, it will increase profits.
3. Reducing the risks associated with the loss of finances. The task is solved by developing an effective system for identifying and assessing risks. As well as the development of actions to minimize them or compensate for possible losses.
4. Profit growth. The problem is solved by optimizing the use of cash flows. An important point is a competent calculation of current and non-current assets.

Functions and methods of financial management

Functions of financial management:

• organization of relations with third parties, control of relations;
• receiving and rational use material resources;
• ways to allocate the capital of the company;
• analysis and adjustment of cash flows of the enterprise.

Financial management also has strategy and tactics. Strategy is general direction, that is, what the company is moving towards, tactics - a short-term direction, that is, how the strategy will be implemented. Processes are similar to goals and objectives. An analogy can be drawn: strategy is the formation of goals, tactics is the formation of tasks.

Based on the foregoing, there are the following methods of financial management that allow you to perform the following functions:

Planning:

1. creation financial policy companies, setting goals for the long and short term, drawing up a budgeting plan for the organization;
2. creation of pricing policy, sales analysis, market behavior forecasting;
3. tax planning.

Creation of the capital structure, calculation of its value:

1. search for budgeting needs of the company's divisions, search for alternative financing, development of a capital structure that will ensure profit growth;
2. calculation of the cost of capital;
3. creating a stream of investments in such a way that the profit from them blocked depreciation;
4. investment analysis (see).

Development of investment investment policy:

1. search for growth points and investments of free finance, analysis options, choosing the most profitable with fewer risks;
2. development of investment instruments, their management, efficiency analysis.

Working capital management:

1. based on projected growth points, identifying the need for individual financial assets for them;
2. development of such an asset structure so that the company's activities are liquid;
3. increasing the efficiency of working capital use.
4. analysis of monetary transactions, their control and conduct.

Working with risks:

1. search for risks;
2. analysis and ways to avoid risks (see);
3. development of ways to compensate for financial losses from risks.

Information support of financial management

Financial management cannot be effective without working with information. All information that enters the financial management department comes through two channels - internal and external. In general, the information necessary for the effective operation of the unit can be divided into several types:

1. General economic development of the country (required for).
2. Market conditions, that is, the competitiveness of goods (needed to develop a portfolio of short-term investments).
3. Information about the performance of competitors and counterparties (important for making immediate management decisions).
4. Information about the standards and the regulation of activity.
5. Indicators of the financial activities of the enterprise itself (profit and loss statements, the so-called P&L report).

Problems of financial management

Financial management, like any other direction of management in the enterprise, has a number of problems. In Russia, a study was conducted, on the basis of which it was possible to identify the main problems. CEOs and CFOs of more than 250 enterprises of all sizes were interviewed. Some of them include no more than 30 employees, in others the staff reaches several thousand people.

Problems faced by financial management:

• financial management and cash deficit;
• drawing up a work plan;
• financial management training;
• anti-crisis management;
• development of a funding strategy;
• management of expense items;
• organizational structure of the financial department;
• other tasks of financial management.

Financial management is the work with the money of the enterprise; accordingly, such a type of management is considered effective, in which the profit and profitability of the enterprise grow.

You can evaluate the effectiveness of financial management by analyzing several groups:

• profitability and profitability of the company;
• business activity and capital productivity;
• the market value of the company.

To obtain profitability and profitability, companies analyze several indicators:

• how effectively the company receives profit from its core activities;
• whether there is enough own budget (without attracting third-party capital) to carry out activities;
• net profit is compared to assets on accounts (the most effective method ratings);
• the profit received from the sale of goods is compared with the costs of its production and sale;
• how much each ruble brings profit.

Business activity and capital productivity show the effectiveness of the use of attracted funds and invested own finances in other areas. The profit from these actions is estimated.

Market value of the company- This is an indicator for external companies, for example, partners. With its help, third-party organizations can draw conclusions about the effectiveness of the enterprise, as well as make decisions regarding the start of joint activities and partnerships.

Basic indicators of financial management

At present, Western business standards have been adopted on the Russian market. The basic indicators of financial management are:

• added value;
• gross result of exploitation of investments in external sources;
• net result of exploitation of investments in external sources;
• economic profitability of assets.

Added value- is formed by deducting from the cost of all manufactured products (not only sold) for the reporting period the cost of services, materials and third-party organizations. This remainder is the net value added. The higher it is, the more successful the enterprise.

Gross result- salaries and all related expenses (tax and pension contributions, etc.) are subtracted from the previous indicator. This indicator shows profit without depreciation, income tax and borrowing costs. Describes how successfully the company conducts its financial activity. Helps to predict future development.

Net result- all costs for restoring own balance are subtracted from the previous indicator (excluding payment of interest on loans, income tax, loans, etc.). Shows the balance sheet profit of the organization.

Economic profitability- net profit with all deductions for expenses, both their expenses and borrowed funds.

Definition of financial management

Financial management is the process of managing operations related to financial and cash flows, which is aimed at providing the necessary financial resources at the right time, as well as their optimal use according to goals and needs.

In general, financial management is the following scheme:

Control it is the influence of the subject on the object to achieve the desired result. In financial management, the subjects are financial managers, and the objects are the resources of the enterprise and the sources of their formation.

The purpose of financial management there will be an increase financial condition company owners.

Principles on which financial management is based

1. Integration into the overall company management system. Regardless of in which area of ​​activity a management decision is made, in any case it will affect. Financial management is associated with various types of functional management. That is why it is necessary to integrate financial management into the overall management system.

2. The systemic nature of the preparation of management decisions. Financial management should be presented as a comprehensive management system, which is able to ensure the development of management decisions that are dependent on each other, each of which will affect the overall financial result of the enterprise.

3. High dynamics in management. It is not always possible to use previously made decisions in the future, because external environment very dynamic, and tend to change at any moment. At the same time, the internal conditions the existence of the enterprise, especially during transitions to the next life cycle. Therefore, financial management must be very flexible in order to adapt to the conditions of both the external and internal environment and other factors.

4. Many options in the development of management decisions. In the process of developing decisions, financial management must also take into account alternative options for decisions.

5. Orientation to the general goals of the enterprise. Any decision, even the most effective one, cannot be implemented if it contradicts the general strategic goal of the enterprise development.

The main tasks of financial management

1. Providing the enterprise with sufficient financial resources for its development in a certain period. The implementation of this task can be carried out both at the expense of borrowed funds, or internal sources enterprises.

2. Optimal distribution of financial resources for certain areas of activity. This task helps to establish the necessary proportion in the distribution of funds for production and social needs and the development of the enterprise.

3. The efficiency of the use of cash flow. The solution of this problem occurs in the process of optimizing the distribution of cash flows of the enterprise.

4. Ensuring a stable financial balance of the enterprise. This equilibrium will be represented as financial stability and solvency, its provision is possible due to the formation optimal size capital and assets, self-financing investment needs, etc.