1. FINANCE AND ACCOUNTING NON-FINANCIAL PROFESSIONALS
FOR
NON-FINANCIAL PROFESSIONALS
TRAINING COURSE
Business Research and Service Institute
Pennsylvania, USA
brasi.org

2. AGENDA
1. Introduction to Business and Finance
2. Analyzing Information in Financial Statements
3. Time Value of Money
4. Capital and Returns
5. Valuations and Terminology

3. Session 1 INTRODUCTION To BUSINESS & FINANCE
CISCOM
Session 1
INTRODUCTION To
BUSINESS & FINANCE
Business Research and Service Institute

4. Manufacturing Business
Types of Businesses
Manufacturing Business
Product
Toyota Cars, trucks, vans
Intel Computer chips
Boeing Jet aircraft
Nike Athletic shoes and apparel
Coca-Cola Beverages
Sony Stereos and television

5. Merchandising Business
Types of Businesses
Merchandising Business
Product
Wal-Mart General merchandise
Toys “R” Us Toys
Mustafa Consumer electronics
Seven-Eleven Grocery Item
LibertyBooks.com Book

6. Types of Businesses Service Business Disney Entertainment
Product
Disney Entertainment
British Airways Transportation
Marriott Hotels Hospitality and lodging
Merrill Lynch Financial advice
T-Mobile Telecommunication

7. Alternative Forms of Business Organization
Types of Business Organizations
A business takes one of three forms of organization. In some cases, accounting procedures depend on which form the organization takes.

8. There are three types of business organizations
Proprietorship
Partnership
Corporation

9. A proprietorship is owned by one individual.
Jack’s

11. 10

12. A partnership is owned by two or more individuals.
Jack and Alvin’s

14. 13

15. A corporation is organized under state or federal statutes as a separate legal entity.
J & A, Inc.

16. 15

18. Business Strategies
A business strategy is an integrated set of plans and actions designed to enable the business to gain an advantage over its competitors, and in doing so, to maximize its profits.

19. Business Strategies
Under a low-cost strategy, a business designs and produces products or services of acceptable quality at a cost lower than that of its competitors.
Wal-Mart
Suzuki Cars

20. Business Strategies
Under a differential strategy, a business designs and produces products or services that possess unique attributes or characteristics which customers are willing to pay a premium price.
Giorgio-Armani
BMW

21. Business Stakeholders
A business stakeholder is a person or entity having an interest in the economic performance of the business.

22. Business Ethics

23. Sound Principles that form the foundation for ethical behavior
Business Ethics
1. Avoid small ethical lapses.
2. Focus on your long-term reputation.
3. You may expect to suffer adverse personal consequences for holding to an ethical position.
Sound Principles that form the foundation for ethical behavior

24. The Financial Statements

25. Financial Statements: THE FLOW OF INFORMATION
1. People make decisions
2. Business transactions occur
3. Businesses prepare reports to show the
results of their operations

26. Financial Statements:
Preparation

27. DECISION MAKERS WHO USE FINANCIAL STATMENTS
Individuals
Businesses
Investors and Creditors
Government Regulatory Agencies
Taxing Authorities
Nonprofit Organizations

28. Financial and Management Accounting
External Users
(Financial Accounting)
Internal Users
(Management Accounting)

29. Questions Asked by Internal Users

30. Questions Asked by External Users

31. The Balance Sheet
What are the different sections of the Balance Sheet?

32. BALANCE SHEET
The balance sheet (statement of financial position) reports the company’s assets, liabilities, and owners’ equity

33. BALANCE SHEET

34. Balance Sheet Problems
NUTRINA PRODUCTS INC.

36. Case Study
Pioneer Pharmacy Balance Sheet

37. INCOME STATEMENT
The income statement (statement of earnings) reports the company’s revenues, expenses, and net income or net loss for the period

38. INCOME STATEMENT

39. INCOME STATEMENT
YANON SOUND & VIDEO, INC.

41. BALANCE SHEET (COMPLEX )
DREAM REALTORS

44. STATEMENT OF CASH FLOWS
The statement of cash flows reports the company’s cash inflows and outflows from operating, investing, and financing activities

46. STATEMENT OF CASH FLOWS
Operating activities
Companies operate by buying goods and services, which are sold to customers
Investing Activities
Companies invest in long-term assets that are used to run the business
Financing Activities
Companies finance themselves by issuing stock and borrowing money

47. RELATIONSHIPS AMONG THE FINANCIAL STATEMENTS

49. INFORMATION REPORTED ON THE FINANCIAL STATEMENTS

50. Question Answer Financial Statement1. 2. 3. 4.

51. Summary of Types Learning Objectives1. 2. 3.