Financial resources is a term covering all financial funds of the organization. From an economic perspective financial resources are the part of the organization’s assets (property). Sometimes financial resources are reffered just as Finance, often with some attributes (such as Business finance, Personal finance, Public finance).
Finance is one type of resource, respectively, that inputs into the production process.
How financial resources are structured?
In terms of finance control, financial resources are structured as follows:
- Business funds - cash, deposits with financial institutions and cash equivalents (securities, checks …)
- Corporate capital - the sum of all money invested in the organization’s total assets (equity capital + liability (foreign capital)
- Other financial resources - resources of funds creation and corporate capital (flow variable - the sum of “inflow” of money into the company for a certain period)
For a designation of financial resources is also used the concept of financial assets, that can have various forms of securities, which organizations own, or other form of receivables:
- Money and gold (in cash or in the bank account)
- Promissory notes
Management area focused on finance is financial management.
Note: Term Finance is not clearly defined in the theory.
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