Financial management

Author: Yuan Jianguo
Publisher:
Publish Date: 2001-06-01
Features: This book is based on China's newly promulgated Enterprise Accounting System and various financial management systems, integrating the practices of China's economic and financial management reforms. It incorporates scientific achievements in modern financial management from both domestic and international sources, particularly the successful experiences of general higher financial and economic colleges' teaching materials. It strives to reflect the requirements of establishing a socialist market economy system and modern enterprise systems for financial management, while fully considering the characteristics of teaching objects in higher financial and economic colleges and vocational colleges, as well as aligning with the content of China's recent unified CPA exams and accounting professional title exams. It focuses on explaining the basic theories, knowledge, and methods of modern enterprise financial management, aiming to embody the scientificity, inspiration, completeness, and applicability of the textbook.
Chapter 1: General Introduction Content Summary
This chapter primarily introduces the concept and characteristics of financial management, the objects and content of financial management; the overall objectives and specific objectives of financial management, the organization and basic links of financial management, the time value of money and the risk value of investment, the external and internal environments of financial management, and other fundamental theoretical issues in financial management.
Section 1: The Concept and Characteristics of Financial Management
Financial management is a fundamental management activity of enterprises under the conditions of commodity economy. Especially in modern market economy societies, as the scale of enterprise production and operation continues to expand and economic relationships become increasingly complex, competition also intensifies, making financial management an even more crucial aspect of enterprise survival and development. The more developed the market economy, the more important financial management becomes.
1. The Concept of Financial Management
Financial management refers to the management of enterprise financial activities. These activities first manifest as the movement of funds in the process of enterprise reproduction, an objective economic phenomenon whose foundation lies in commodity economy. Under commodity economy conditions, goods are a unity of use value and value, possessing dual characteristics. Correspondingly, the process of enterprise reproduction also has dual characteristics: on one hand, it is a tangible process of production and exchange, where laborers use labor tools to act on labor objects, producing goods and engaging in exchange; on the other hand, it is an intangible process of value formation and realization, where the value of consumed production materials and the value of necessary labor expended by laborers are transferred into the product value, creating new value, and ultimately realized through sales activities. The production and exchange process of use value is tangible, representing the physical movement of goods, while the process of value formation and realization is intangible, representing the value movement of goods and materials. This value movement process, when expressed in monetary form, becomes the movement of funds in the process of enterprise reproduction. As for funds, they are the monetary representation of goods and materials in the process of enterprise reproduction.