Explanation of terms Some concepts about financial management

Financial management is the management of the acquisition of assets (investment), the financing of capital (financing), the cash flow from operations (working capital), and the distribution of profits under certain overall objectives. Financial management is an integral part of enterprise management, which is an economic management work that organizes the financial activities of enterprises and handles financial relations in accordance with financial laws and regulations and the principles of financial management. To put it simply, financial management is an economic management work that organizes the financial activities of an enterprise and deals with financial relations.

1. Financial management: enterprise financial management is an integral part of enterprise management, which is an economic management work that organizes enterprise financial activities and handles financial relations in accordance with financial laws and regulations and the principles of financial management.

2. Cash flow: Cash flow is the amount of cash inflow and outflow of an enterprise in a certain period of time, mainly including cash flow generated by operating activities and cash flow generated by financing activities.

3. Cost of capital: refers to the price paid by the enterprise to raise and use funds. The cost of capital includes two parts: fund raising expenses and capital occupation costs.

Fund raising expenses refer to various expenses paid in the process of fund raising, such as printing fees, lawyer fees, notary fees, guarantee fees and advertising fees paid for the issuance of bonds. It should be noted that when a company issues ** and bonds, the handling fee paid to the issuing company is not used as a corporate fundraising expense. Because this handling fee is not handled through the accounting of the enterprise, the enterprise is recorded on the basis of the issuance ** and the net amount after the issuance fee.

The fund occupation fee refers to the fee that should be paid for the appropriation of other people's funds, or the remuneration demanded by the owner of the fund from the fund user by virtue of his ownership of the fund. Such as dividends, bonuses, bonds and interest paid on bank borrowings by shareholders.

4. Simple interest method: The simple interest method is a method of converting the time value of funds. With this method, interest is calculated on the principal amount and the interest is no longer rolled over.

It refers to the method of calculating interest at the prescribed interest rate based on the initial principal in each time unit (such as year, quarter, month, day, etc.), and the interest generated in the previous period is not added to the principal of the next period. is a method of calculating interest.

5. Financial risk refers to the possibility that the final financial results obtained by the enterprise in a certain period and within a certain range deviate from the expected business objectives due to various unpredictable and uncontrollable factors in various financial activities, thus forming the possibility of causing the enterprise to suffer economic losses or greater benefits. The financial activities of an enterprise run through the entire process of production and operation, and risks may arise from raising funds, long-term and short-term investments, and distributing profits.

6. Working capital: also called working capital. Working capital in a broad sense, also known as total working capital, refers to the funds invested by an enterprise in current assets, including cash, valuable**, accounts receivable, inventory and other funds.

Working capital in the narrow sense refers to the difference between the current assets and the current liabilities of an enterprise at a certain point in time.

Based on accounting, management is the goal。The process of identifying, measuring, accumulating, analyzing, compiling, interpreting, and communicating financial information that management uses to plan, evaluate, and control within an organization. It is the accounting used for the planning, control, and decision-making activities of an organization.

Management accounting is involved in providing information to internal managers who are responsible for directing, planning, controlling business activities and making various management decisions. Management accounting can be compared to financial accounting, which provides information to shareholders, creditors, and others outside the organization through financial statements.

Management accounting is a branch of enterprise accounting that is separated from the traditional accounting system and placed alongside financial accounting, focusing on making optimal decisions for enterprises, improving operation and management, and improving economic service efficiency.

Management accounting is an accounting branch that aims to improve the economic efficiency of enterprises, and through a series of special methods, the information provided by financial accounting and other materials are processed, sorted out and reported, so that managers at all levels of enterprises can plan and control various economic activities that occur on a daily basis, and help decision-makers make various special decisions.

Basic meaning. Management accounting (management accounting) includes two major components: cost accounting and management control system, we study the evolution of management accounting technology and methods, from the perspective of history and development, to examine the changes and development of management accounting at all stages, combined with the evolution of management accounting research focus and the future trend of management accounting work, trying to draw useful enlightenment for the academic research and practical application of management accounting. Management accounting is playing an increasingly important role in the financial management activities of enterprises.

Among the core concepts of management accounting, value creation and maintenance are the two most important points. Based on this, management accounting is the most effective tool for the integration of strategy, business and finance of enterprises.

The connotation and role of strategic management accounting.

Strategic management accounting refers to an accounting branch that can provide accounting information services for the company's strategy formulation, strategy implementation and even the company's scientific development through the collection and analysis of the material company's own material company, stakeholders, competitors and various market information, combined with the company's own strategic objectives and industry characteristics. Strategic management accounting is different from traditional management accounting in that it can provide not only internal information of the company, but also information about the external market; It not only reduces the company's operating costs and improves its management capabilities, but also plays the role of accounting from a strategic perspective.

Management accounting, alongside financial accounting, is a branch of enterprise accounting that focuses on making optimal decisions, improving operation and management, and improving economic efficiency for enterprises. The Management Accountant Certificate is the only platinum-level certificate for management accounting talents in the field of finance and economics in China.

The management accounting function is the function of decision-making, organization, planning, control and evaluation.

Management accounting: refers to an accounting branch that under the conditions of contemporary market economy, with the ultimate goal of strengthening the internal operation and management of enterprises and achieving the best economic benefits, with the business activities of modern enterprises and their value performance as the object, through the deep processing and reuse of financial and other information, to realize the functions of economic process, decision-making, planning, control, responsibility assessment and evaluation.

Explanation of terms 1, management accountingManagement accounting refers to the economic process under the conditions of contemporary market economy, with the ultimate goal of strengthening the internal management of enterprises and achieving the best economic benefits, with the business activities and value performance of modern enterprises as the object, through the deep processing and reuse of financial and other information, to achieve the economic process, decision-making, planning, control, responsibility assessment and evaluation and other functions of an accounting branch. 2. Basic assumptions of management accountingThe basic assumptions of management accounting refer to the general term of the indispensable prerequisites for the realization of management accounting objectives, the reasonable definition of the time and space of management accounting, the unification of management accounting operation methods and procedures, and the organization of management accounting. 3. Management Accounting PrinciplesManagement accounting principles refer to a series of major work specifications determined on the basis of clarifying the basic assumptions of management accounting and ensuring that management accounting information meets certain quality standards.

Management accounting, also known as "analysis report accounting", is a branch of enterprise accounting that is separated from the traditional accounting system, alongside financial accounting, and focuses on making optimal decisions for enterprises, improving operation and management, and improving economic benefits.