21st Century Vocational and Technical College Accounting Major Core Curriculum Textbook -- Financial Management: Financial Management

Author: Yuan Jianguo
Publisher:
Publish Date: 2001-07-01
Features: This book is based on China's newly promulgated Enterprise Accounting System and various financial management systems, combining the practice 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 mainly introduces the concept and characteristics of financial management, the objects and content of financial management; the overall goals and specific goals 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, with the continuous expansion of enterprise production and operation scales and increasingly complex and fierce economic relationships and competition, financial management has become a crucial link for the survival and development of enterprises. 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. Enterprise financial activities first manifest as the capital movement in the process of reproduction, which is an objective economic phenomenon with its objective foundation in commodity economy. Under the conditions of commodity economy, commodities are a unity of use value and value, having dual characteristics. Correspondingly, the reproduction process of enterprises also has dual characteristics: on one hand, it is a process of use value production and exchange, where laborers use labor means to act on labor objects, produce goods, and engage in exchange; on the other hand, it is a process of value formation and realization, where the value of consumed production materials and the necessary labor value expended by laborers are transferred into the product value, creating new value, and ultimately realizing the product value through sales activities. The use value production and exchange process is tangible, being the physical movement of commodities; whereas the value formation and realization process is intangible, being the value movement of commodity materials. This value movement process, expressed in monetary form, is the capital movement in the process of enterprise reproduction. As for capital, it is the monetary expression of commodity materials in the process of enterprise reproduction.