Finance for non-financial managers - Laurentiu Mihai

MTD Training

Finance for Non-financial Managers

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Finance for Non-financial Managers

? 2010 MTD Training & Ventus Publishing ApS

ISBN 978-87-7681-722-0

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Contents

Finance for Non-financial Managers

Contents

Preface

7

1.

1.1

1.2

1.3

1.4

Introduction

Understanding Finance Basics

Three Basic Finance Principles

Basic Finance Terms

Overview of the Ebook

9

9

9

10

12

2.

2.1

2.2

2.3

2.4

2.5

Financial Information Every Organization Needs

Introduction

Bookkeping (Accounting)

Chart of Accounts

The General Journal (Original Book of Entry)

The General Ledger

14

14

15

16

18

19

3.

3.1

3.2

3.3

Balance Sheet

Introduction

What a Balance Sheet Tells You

What the Balance Sheet Doesn¡¯t Tell You

22

22

23

25

4.

4.1

The Income Statement

Introduction

26

26

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Contents

Finance for Non-financial Managers

4.2

4.3

4.4

Elements of the Income Statement

What an Income Statement Tells You

What an Income Statement Does Not Tell You

26

30

30

5.

5.1

5.2

5.3

Cash Flow Statement

Introduction

Cash Flow Categories

Preparing the Cash Flow Statement

32

32

33

35

6.

6.1

6.2

6.3

7.

7.1

7.2

7.3

7.4

7.5

Understanding Budgets

Introduction

Approaches to Budgeting

Reading the Budget

Pricing

Introduction

How Important is Price?

Demand for the Product or Service

Your Environment

Pricing Strategies

37

37

38

40

41

41

41

41

41

42

8.

8.1

8.2

8.3

Applying Your Knowledge

Introduction

Defining Your Reasons

Background

44

44

44

45

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