|Author :||Jae K. Shim, Ph.D., CPA|
|CPE Credits :||11.0|
|IRS Credits :||0|
|Passing Score :||70%|
|Primary Subject-Field Of Study:||
Finance - Finance for Course Id 170
A manager’s success depends largely on his or her ability to manage a company’s assets. This mission is complicated by the interdependent nature of a company’s finances. One short-term financial problem, such as a cash flow shortage, can cause a longer-term credit problem, such as denials for bank loans. The successful manager must be able to quickly identify and resolve such short-term problems in order to prevent their long-term deleterious effects. This course is intended for effective business managers and entrepreneurs. Covering every facet of the daily management of a business’s finances, it is designed to help managers pinpoint, remedy, and prevent business and financial problems. In each case, it also points out potential ripple effects—the ways in which a problem in one sector can disrupt operations in other areas.
|Usage Rank :||0|
|Prerequisites :||Basic math.|
|Experience Level :||Overview|
|Additional Contents :||Complete, no additional material needed.|
|Additional Links :|
|Advance Preparation :||None.|
|Delivery Method :||Self-Study|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE).|
|Revision Date :||24-Jan-2019|
|NASBA Course Declaration :||Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.|
|Approved Audience :||
NASBA QAS - NASBA Registry - 170
|Keywords :||Finance, 101, Financial, Solutions, Diagnosis, Remedy, cpe, cpa, online course|
|Learning Objectives :||
2. Identify irrelevant cost factors when evaluation special orders.
3. Identify causes of a high level of merchandise returns that can affect business profits.
2. Recognize trade-offs between excessive inventory ordering and carrying costs.
3. Identify order costs and carrying costs associated with inventory management.
4. Recognize how the economic order quantity (EOQ) applies to inventory management.
5. Identify technologies used to improve inventory tracking and management.
6. Recognize reasons that create a lack of inventory storage space.
2. Recognize ways to reduce the break-even point, and limitations of break-even analysis.
3. Recognize how to apply cost-volume-profit analysis.
4. Identify the problems of a weak sales mix and the causes of falling sales or profits.
2. Recognize components of interest rate risk.
3. Identify factors relating to a lack of diversification and increased risk.
4. Recognize signs of existing or potential financial problems.
2. Identify the objectives of debt rating services and some bond terminology.
3. Recognize characteristics of evaluating stock prices.
2. Recognize steps management can take to avoid business failure.
3. Recognize uses of the Altman Z-Score for spotting risky companies.
4. Identify measures that a company can take to avoid a takeover threat.
2. Identify ways to improve cash flow and return on surplus funds.
3. Identify early warning signs of a company going broke.
2. Calculate the advantage of accepting vendor terms and discounts.
3. Recognize the reasons for poor credit ratings.
4. Identify methods to prevent check signing fraud and improper payments.
2. Identify early warning signals for inadequate liquidity.
3. Recognize ways to improve return on investment and how return on equity is calculated.
4. Identify methods to identify a low rate of return and the signs for poor quality of earnings.
2. Identify the causes for excessive labor costs.
3. Recognize the concept associated with operating leverage.
4. Recognize the applications of activity-based costing.
5. Understand how a profit-maximizing firm would adjust prices at different levels of demand.
2. Recognize how to compute an efficiency variance.
|Course Contents :||
Chapter 1: Pricing, Sales, and Advertising Miss Margins
Problem: Sales Do Not Support Advertising Expenditures
Problem: Revenue Base Erosion
Problem: Increased Product Pricing Causes a Reduction In Sales
Problem: Lowered Price Shrinks Margins
Problem: High Level of Merchandise Returns
Chapter 1 Review Questions
Chapter 2: Inventory and Production Shortfalls
Problem: Low Turnover of Merchandise
Problem: Deficient Inventory Balances
Problem: Excessive Inventory Ordering and Carrying Costs
Problem: Ordering Incorrect Quantities of Inventory
Problem: High Rate of Inventory Stockout
Problem: Theft of Inventories
Problem: Miscounted Inventory
Problem: Inaccurate Inventory Records
Problem: High Rate of Product Obsolescence
Problem: Manufacturing Schedules Missed
Problem: Poor-Quality Goods Produced
Problem: Lack of Inventory Storage Space
Problem: Delayed Receipt of New Inventory
Chapter 2 Review Questions
Chapter 3: Profit Targets Are Off
Problem: Unrealistic Break-Even Point
Problem: Product or Service Does Not Break-Even
Problem: Excessive Cost-To-Production Volume
Problem: Weak Sales Mix
Problem: Unprofitable Profit Centers
Problem: Potential Loss of A Contract
Problem: Product Refinement Generates a Loss
Chapter 3 Review Questions
Chapter 4: Risk-Return Unbalance
Problem: Disproportionate Risk to Return
Problem: Risk in the Industry
Problem: Risk in Corporate Operations
Problem: Lack of Diversification
Problem: Inflationary Risk
Problem: Political Risk
Problem: Foreign Exchange Risk
Problem: Social and Environmental Risks
Problem: Management Unaware of Financial Problems
Chapter 4 Review Questions
Chapter 5: Inability to Finance Weakens Business Development
Problem: Market Price of Stock Falls
Problem: Bond Rating Drops
Problem: Inability to Obtain Financing
Problem: Inability to Issue New Securities
Problem: Dividends Are Restricted
Problem: Restrictive Loan Agreements Are Breached
Chapter 5 Review Questions
Chapter 6: Business Control Threatened
Problem: Bankruptcy Looms
Problem: Inability to Curb Financial Problems
Problem: Inability to Repay Debt
Problem: Takeover Threat
Problem: Costs Increase after Acquisition
Problem: Financial Inconsistencies after Acquisition
Chapter 6 Review Questions
Chapter 7: Cash Flow Disturbances
Problem: Inadequate Cash Position
Problem: Surplus Funds
Problem: Delayed Customer Payments
Problem: Paying Cash Too Soon
Problem: Cash Outflows Exceed Cash Inflows
Problem: Going Broke While Maintaining Profits
Problem: Inefficient Use of Cash
Chapter 7 Review Questions
Chapter 8: Mess in Accounts Payable and Receivable
Problem: Vendor's Price Increases
Problem: Hidden Discount Costs
Problem: Poor Credit Rating
Problem: Check Fraud and Improper Payments
Problem: Stringent Credit Requirements
Chapter 8 Review Questions
Chapter 9: Lackluster Financial Statements
Problem: Inadequate Working Capital
Problem: Inadequate Liquidity
Problem: Excessive Debt
Problem: Off-Balance-Sheet Liabilities
Problem: Deficient Asset Use and Turnover
Problem: Low Rate of Return
Problem: Lack of Residual Income
Problem: High Cash-Realization Risk in Assets
Problem: Poor Profitability and Growth
Problem: Poor-Quality Earnings
Problem: Unstable Operations and Earnings
Problem: Unstable Income
Problem: Low Price/Earnings Ratio
Chapter 9 Review Questions
Chapter 10: Costs Out Of Control
Problem: Excessive Labor Costs
Problem: Excessive Operating Leverage
Problem: Inadequate Cost Controls
Problem: Lack of Cost Information
Problem: Distorted Cost Information
Problem: Supplies Increase in Cost or are Unavailable
Problem: Cost Reductions Hamper Development
Problem: Reduced Discretionary Costs Hurt the Business
Problem: Up-Front Costs Impede Project Authorization
Problem: Pricing Lowers Profits
Chapter 10 Review Questions
Chapter 11: Budgeting and Cost Control Problems
Problem: Actual Costs Exceed Budgeted Costs
Problem: Actual Costs Exceed Standard Costs
Problem: Actual Revenue below Standard Revenue
Problem: Inaccurate Sales and Expense Estimates
Problem: Lack of the Right Product at the Right Time
Problem: Poor Use of Production Capacity
Problem: Expansion Exceeds Financial Resources
Chapter 11 Review Questions
Chapter 12: Fragile Internal Controls
Problem: Costs Not Closely Tracked
Problem: Assets Not Monitored
Problem: Recordkeeping Errors
Problem: Credit Card Fraud
Problem: Cumbersome Accounting Procedures
Chapter 12 Review Questions
Chapter 13: Tax Planning and Preparation
Problem: Incomplete and Inaccurate Tax Recordkeeping
Problem: Underpayment of Taxes
Problem: Double Taxation
Problem: Avoiding Tax on the Transfer of Property
Problem: Incorrect Classification of Employees
Problem: Fringe Benefits Not Recorded As Income
Problem: Excessive Compensation to Employee Shareholders
Problem: Funds Insufficient to Purchase a Deceased Shareholder's Stock
Chapter 13 Review Questions