It is important to ensure that financial plans are being implemented and to catch minor problems before they become major problems. Accordingly, the financial manager should establish a means of monitoring and evaluating financial performance. Interim budgets (weekly, monthly, or quarterly) may be prepared for comparison purposes. These comparisons point up areas that require additional or revised planning.
Exercises
I. Translate into Russian.
Basis of financial management; goal; objective; sources of financing; funding; step; important task; financial performance; budgeting; expenditure; revenue; sales revenue; equity capital; debt capital; specific period; profit; assets; short-term borrowing; long-term borrowing; merger; companywide budget; cash budget; zero-base budgeting; income; source; share of ownership; assign a cost; justify; meet needs; obtain; implement; modify; establish; reduce; determine; evaluate.
II. Find the English equivalents.
; ; ; ; ; ; (); ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ( ).
III. Fill in the blanks.
1. Financial planning begins with the establishment of... and
2. A budget is a financial statement that projects... and/or... over a specified future period of time.
3. Usually the budgeting process begins with the construction of individual budgets for each of the various types of.
4. Budgeting accuracy is improved when budgets are first constructed for individual... for shorter periods of time.
5. Departmental budgets can help managers... and... financial performance throughout the period covered by the overall cash budget.
6. In the traditional approach, each new budget is based on the......contained in the budget for the... year.
7. This approach leaves room for the manipulation of......
to protect the interests of separate departments.
8. Zero-base budgeting is a budgeting approach in which every... must be justified in every budget.
9.......are the first type of funding.
10. The second type of funding is.......
11. The third type of funding is.....
12. The fourth type of funding is the... of....
13. Selling assets is a.......
14. The financial manager should establish a... of monitoring and... financial perfocmance.
IV. Translate into English in a written form.
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2. .
3. .
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5. .
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7. .
8. .
9. .
10. : , , .
11. .
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V. Questions and assignments.
1. What is a plan?
2. What is a financial plan?
3. What does financial planning begin with?
4. State the difference between goals and objectives.
5. List the three steps involved in financial planning.
6. In what case financial planning cannot proceed?
7. State the meaning of the word "budget".
8. Give the examples of various types of expenses which must be considered () in budgeting process?
9. How can budgeting accuracy be improved?
10. What is the peculiarity () of the traditional approach to budgeting?
11. What is the problem with this approach?
12. What is the difference between the traditional budgeting approach and zero-base budgeting?
13. What is the problem with zero-base budgeting?
14. List the four primary sources of funding.
15. For what purpose is equity capital used?
16. Is selling assets a normal step?
17. In what case selling assets may be a reasonable last resort?
18. For what purpose may interim budgets be prepared?
VI. Make up a written abstract ( ) of the text.
