Duration: 60 hours/ 19 Weeks
To develop knowledge and understanding of ways organisations finance their operations, plan and control cash flows, optimise their use of working capital and allocate resources to long term investment projects.
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The syllabus for FFM, Managing Finances, introduces students to different ways of managing finance within an organisation with the aim of enhancing business performance. This includes planning and controlling of cash flow in both the short and long term, how to manage capital investment decisions and managing trade credit for an efficient flow of cash.
The syllabus starts by introducing the principles of effective working capital management, and the impact working capital has on an organisation's cash flow. It then looks at the techniques for forecasting cash to aid an organisation in planning its cash needs.
The next area of the syllabus looks at the different ways of managing cash in the short, medium and long term, including investing funds in capital projects. It finally looks at procedures for effective credit management to maximise flow of cash to the business
On successful completion of this paper, candidates should be able to:
A Explain and apply the principles of working capital management
B Apply a range of accounting techniques used to forecast cash within the organisation
C Describe methods and procedures for managing cash balances
D Explain principles in making medium to long term financing decisions
E Explain and apply principles in making capital investment decisions
F Describe credit management methods and procedures
A Working capital management
1. Working capital management cycle
2. Inventory control
3. Accounts payables and receivables control
B Cash budgeting
1. Nature and sources of cash
2. Cash budgeting and forecasting
C Managing cash balances
1. Treasury function
2. Overview of financial markets
3. Managing deficit cash balances
4. Managing surplus cash balances
D Financing decisions
1. Money in the economy
2. Medium term financing
3. Long term financing
4. Financing for small and medium sized enterprises
E Investment decisions
1. Financing concepts
2. Capital budgeting
3. Capital investment appraisal
F Credit management
1. Legal issues
2. Credit granting
3. Monitoring accounts receivables
4. Debt collection
The syllabus is assessed by a two hour paper based examination. Questions will assess all parts of the syllabus and will include both computational and non computational elements.