Introduction To Finance

SY 2018-2019
Accountancy, Business and

Management
Teacher: Jesska SR. So
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CURRICULUM
GUIDE
INTRODUCTION TO Understanding Finance
FINANCE
LEARNING COMPETENCY
The learners shall be able to explain the major role of financial management
and the different individuals involved. (ABM_BF12-IIIa-1)
SPECIFIC LEARNING
OUTCOMES
The learners will be able to:
1. define finance;
2. identify the different areas of finance;
3. discuss finance in a business organization;
4. describe the functions of a finance officer; and
5. state the qualifications of a finance officer.
ON A SHEET OF PAPER,
ANSWER THE FOLLOWING
QUESTIONS:
A. How much is your daily allowance? If not given daily, how much is your average
allowance per day?
B. Write down all the items you spend money on. List the description and peso amount
spent.
C. Compute for the balance of your allowance by deducting the expenses you listed
from your daily allowance.
D. If the answer to Question C is positive, what do you do with the money left?
If the answer is negative, where do you get additional money?
What is finance?
What immediately comes
to your mind when you
hear the word finance?
The management of money, banking,
investments, and credit. (American Heritage
Desk Dictionary)
The science and art of managing money.

FINA (Gitman & Zutter, 2012)
NCE Both a science and an art of correct application

of the economic and accounting concepts and
principles that define the system, structure, and
process of management, allocation, and
utilization of financial resources, investments,
and expenditures.
Refers to the funds of a business which
Financial resources
are provided by the owner or by the
creditors.
Resources that are expected to provide

Financial investments
income and achieve appreciation or
growth of the business
Financial
Cover the operating expenditures and
expenditures
the capital expenditures
AREAS OF FINANCE
Finance is broadly classified into two:
1. Private finance
2. Public finance
Private finance is subdivided into:
3. Business finance
4. Personal finance
Business finance is further subdivided into the following areas:
5. Financial management
6. Capital market
7. Financial investment
PRIVATE FINANCE
The management of financial resources of
private individuals , non-governmental
organizations, and private organizations in
accordance with the prescribed financial policy
and priority of the person or business
organization
PUBLIC FINANCE
The allocation of government income generated
from either taxation or borrowings and the
government expenditure based on the approved
national and local appropriation of budget.
Public finance is also termed as fiscal

administration.
PERSONAL FINANCE
A sub-category of private finance which is
directed towards the management of personal
resources of an individual.
BUSINESS FINANCE
An area of finance that focuses on the handling
and management of financial resources of a
business organization.
The three major divisions of business finance
are financial management, capital market,
financial investment.
FINANCIAL MANAGEMENT
It focuses on capital budgeting decision or
investment decision on the acquisition of assets
and its corresponding financing scheme.
oWhat kind of asset shall be acquired?

oWhat type of financing scheme shall be used in the
acquisition of the asset?
CAPITAL MARKET
An area of business finance that studies the
different financial institutions and their
functions that provide assistance to both private
and public borrowers of funds.
FINANCIAL INVESTMENT
Resources that are expected to provide income
and achieve appreciation or growth of the
business
Includes business decisions about the value and price

of stocks and bonds, portfolio analysis, market
analysis, security analysis, and behaviour of the
investors.
FINANCE IN A BUSINESS
ORGANIZATION
In a typical arrangement of a business organization, four
functional divisions are involved:
1. production and operation division
2. general administrative or human resource division
3. finance division
4. marketing division
FINANCE OFFICER
He/she acts as the wary financial traffic officer
to almost all business transactions with
monetary considerations.
The finance officer is also expected to be the
“shock absorber” of budgetary requests and
requirements of other functional units of the
business.
FUNCTIONS OF A FINANCE
OFFICER
OPERATING DECISIONS
Are financial decisions affecting the routine
operating activities of a business.
It is directed towards providing immediate solution
to the concerns of the functional areas of the firm
such as manufacturing, marketing, purchasing, and
the like.
INVESTMENT DECISIONS
Deals with choosing small and large projects with
several investment opportunities.
FINANCING DECISIONS
Deals with raising or acquiring of funds from outside sources and
not from the ordinary results of the business operations.
A business can raise money from the following activities or

sources:
1. operations
2. investors or lenders
3. owners
QUALIFICATIONS OF A
FINANCE OFFICER
REFERENCES
Teaching Guide for Senior High School BUSINESS FINANCE
Business Finance In the Philippine Setting, For Senior High School, Nick L. Aduana

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SY 2018-2019

Accountancy, Business and

The science and art of managing money.

NCE Both a science and an art of correct application

Resources that are expected to provide

Public finance is also termed as fiscal

oWhat kind of asset shall be acquired?

Includes business decisions about the value and price

A business can raise money from the following activities or

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