Ache Fache Hc Finance (2023 2024) With Complete Solution

ACHE FACHE HC FINANCE (2023 - 2024) WITH COMPLETE SOLUTION Definition and Rule of Inurement - - Diversion of funds to persons in governance or mgt as a result of their position of trust - Directors, officers, trustees are prohibited from engaging in business that allows them to derive financial advantage from their governing board role (conflict of interest) What is a best practice (as far as how soon in days) in receiving payments from date of invoice? - Less than 50 days Definition of working capital - Amount of cash required to support operations - for the period of delay in collecting revenue. 5 Financial Mgt functions that are essential for survival - 1) Financial planning 2) Pricing 3) Mgt of long term capital 4) Mgt of short term assets & liabilities 5) Multiple corporate acct Relation of Finance to the Governing Board - The finance system relates directly to the gov'n board through the finance committee, and the CFO often represents the Sr. Mgt team on the committee. What 4 budgets comprise a financial budget? - 1) Income & expense budget 2) Budgeted financial statements 3) Cash flow budget 4) Capital & new program budgetDefinition of Financial Budget