Hanifa Ayunisa January 16, 2011 Chapter 18 According to chapter 18, I have learned about finance. Finance is the function in a business that acquires funds for the firm and manages those funds within the firm. And financial managers examine the financial data prepared by accountants and make recommendation to top executives regarding strategies firm improving the financial performance of the firm. So, I believe that a good accountant needs to understand finance. There are four major financial needs for firms: managing day-by-day needs of the business, controlling credit operations, acquiring needed inventory, and making capital expenditures. First major financial need is managing day-by-day needs of the business. It means that money has a time value; different value of getting $400 today and a year later. If a person invests the $400 today, the money would grow, and next year the value of money is going to increase. Therefore, timing is important. This concept also
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