The Role of Finance

Jawaban Unit 5 Halaman 55

B. Check your understanding (Page:56-57)
1. To make money, they must first spend money. Inventory and supplies must be bought, equipment and facilities acquired, employees paid.
2. Revenues from sales of the firm's products should be the chief source of funding.
3. Financial managers are the ones who keep track of how money is flowing into and out of the firm.
4. They are the ones who decide how the available funds will be used, how much money is needed, and where to get it.
5. Financial management is the art and science of managing a firm's money so it can meet the goals.
6. Accountant's main function is to collect and present financial data.
7. Financial managers use financial statement prepared by accountants to make financial decisions.
8. They analyze financial data prepared by accountants, and prepare and implement financial plans.
9. The CFO and their staff coordinate information develop and carry out financial strategies.
10. In a small firm, the finance function may be handled by either the accounting department or one or two people.
11. The key activities of the financial managers are financial planning, investment, and financing.
12. Budgets are routinely used to monitor and control the performance of a department, a division, or an individual manager.
13. Budgets are a way to control expenses and compare the actual performance to the forecast.
14. There are three types of budgets : cash budgets, capital budgets, and operating budgets.

C. Improve your vocabulary
Exercise 1 =
1. B. Financial manager
2. C. Budget
3. A. Cash budget
4. C. Financial Manager
5. B. Budget
Exercise 2 =
1. A
2. N
3. F
4. K
5. E
6. L
7. M
8. O
9. G
10. D
11. J
12. I
13. H
14. C
15. B
Exercise 3 =
1. T
2. T
3. F
4. T
5. T
6. F
7. F
8. F
Exercise 4 =
NOUN - VERB
1. equipment - equip
2. relation - relate
3. statement - state
4. preparation - prepare
5. coordination - coordinate
6. information - inform
7. development - develop
8. estimation - estimate
9. combination - combine
10. consideration consider
Exercise 5 =
1. Capital
2. Last
3. Primary
4. Acquire
5. External
6. Utilizes
7. Repaid
8. Arrangement