What is Finance?

Learn the following words and word combinations.

Account n 1) рахунок, розрахунок, ~ current поточний рахунок 2) звіт, 3) доповідь v 1) вважати, брати до уваги 2) звітувати (for) 3) пояснювати (for)

Accountant n 1) бухгалтер 2) відповідач

Accounting n 1) облік, звітність 2) розрахунок, балансування

Asset n юр. 1) майно боржника, майно збанкрутілої фірми 2) pl. фін. активи 3) майно 4) цінна якість, риса

Charge n 1)навантаження 2) турбота, нагляд, піклування, зберігання 3) обов’язки, відповідальність 4) доручення, вимога 5) pl. ціна, витрати

v 1) заряджати зброю 2) навантажувати 3) доручати 4) назначати ціну (for) 5) записувати в борг 6) звинувачувати

Inventory n 1) перелік, інвентар 2)товари, предмети, занесені до переліку 3)переоблік товару, інвентаризація to make (draw) up an ~ провести інвентаризацію

v складати перелік, вносити в інвентар

Overdue a 1) запізнений; the train is ~ потяг запізнюється; it is long ~ давно пора 2) прострочений ( про вексель, борг)

WHAT IS FINANCE?

Finance is the function in a business that acquires funds for the firm and manages funds within the firm (for example, preparing budgets, doing cash flow analysis, and planning for the expenditure of funds on such assets as plant, equipment, and machinery). As you can see, without a carefully calculated financial plan, the firm has little chance for survival regardless of its product or marketing effectiveness. Most organizations will have a manager in charge of financial operations. Generally, this chief financial officer is known as the treasurer or vice president of finance. The fundamental charge is to obtain money and then plan, use, and control money effectively. That includes managing cash, accounts receivable and inventory. When a company's cash is invested it may have a major impact on profits.

You are probably familiar with several finance functions such as buying merchandise on credit and collecting payment from buyers of the firm's merchandise. Both credit and collections are important responsibilities of financial managers. The finance manager must also be sure that the company does not lose too much money to bad debts (people or firms that don't pay). Naturally, this means that finance is further responsible for collecting overdue payments. These functions are critical to all types of businesses, but particularly important to small and medium size businesses,

which typically have smaller cash or credit cushions than large corporations.

All financial managers functions depend greatly on the information

provided by the accounting statements.

♦ Planning	♦ Collecting funds (credit
♦ Budgeting	management)
♦ Obtaining funds	♦ Auditing
♦ Controlling funds (funds	♦ Managing taxes
management)	♦ Advising top management on

financial matters

A manager cannot be optimally effective at finance without understanding accounting. Similarly, a good accountant needs to understand finance. Accounting and finance, finance and accounting - the two go together like bread and butter.