Professional Documents
Culture Documents
Financing and Investing Cycle
Financing and Investing Cycle
Financing and Investing Cycle
INVESTING CYCLE
FINANCING PROCESS
Check
Review
Voucher Review documents
completeness
Payable countersign check
(Accounting Office)
Elements of Financial Planning
Executive summary
Market analysis explaining the competition and the
opportunity
Description of your business (what it does and what
differentiates it from any competitors)
Information about operations and management,
including the management team’s experience
Business plan should include:
Bank Statements
• Lenders are looking to see if your bank statements
support the claims you made in your financial
statements and projections. Typically, you’ll be asked
to provide both personal and business bank
statements for the past 12 months.
Income Statement
Balance Sheet
Bond Certificate
A debt security document representing a stated amount of
corporate debt
SELLING OF STOCK
SELLING TO SMALLER
INVESTORS
SELLING TO EMPLOYEES
Types of Document and Accounting Records
Stock Certificates
An equity security document representing ownership of a stated
number of shares of capital stock
Investors pay
consideration to
corporation for shares
and are issued shares of
stocks
Board of Directors
declares dividends to be Consideration becomes
paid to shareholders out capital of corporation
of corporate profits
Capital of corporation
used to generate income
and profits
Equity and Internal Control
(Approval Issuance and Retirement)
Dividend
Certificate of
Certificate of Stock
Stock
Corporate
Secretary
Stock registrar/
Stock transfer
agent
Acquisition Cycle
purchase resources/ raw materials, inventory,
equipment
Mergers
two companies combine and create a new company
Acquisitions
one company purchases another and absorbs them into
operations
MERGERS AND ACQUISITIONS
Horizontal
two companies that sell simiar products and serve similar
customer
Vertical
two companies operate at different stages of the production
cycle
Accounts/Records:
Consolidations
to combine assets, liabilities and other financial items of two or
more entities into one.
Goodwill
is an intangible asset that arises when one company purchases
another for a premium value.
Intangibles
assets that lack physical sustance.
Accounts/Records:
Deferred Charges
is a long-term prepaid expense that is treated as an asset on a
balance sheet and is carried forward until it is actually used.
INVESTMENT OF EXCESS CASH
The control and proper use of cash is an important aspect of cash
management.
The entity must maintain sufficient cash for use in current operation.
Excess fund/cash
An additional amount of cash beyond what a company
normally needs to have on hand.
Excess cash may be invested in time deposits, money
market instrument and treasury bills for the purpose of
earning interest income.
Investment in time deposit, money market instrument
and treasury bills should be classified as follows:
https://www.investopedia.com/terms/f/financial_plan.asp
https://www.investopedia.com/terms/c/cfo.asp
https://quickbooks.intuit.com/r/loans/what-documents-do-
i-need-to-get-a-business-loan/
https://articles.bplans.com/10-things-the-bank-will-ask-
when-you-need-a-business-loan/
https://www.investopedia.com/articles/stocks/12/how-to-
sell-company-stock.asp
https://prezi.com/qplsgif53l0i/audit-of-the-financing-and-
investing-cycle/
https://prezi.com/99ck3foyox08/financing-cycle/