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Ch 3: General Principles of Financial Planning

About This Chapter

Refresh your memory concerning the general principles of financial planning by opening the lessons in this chapter. Use any Internet-ready device to view the lessons and brush up on master budget preparation, purchases, and borrowing priorities.

General Principles of Financial Planning - Chapter Summary

The general principles of financial planning represent basic knowledge for financial and accounting professionals, and revisiting the basics every so often may prove essential for understanding more advanced topics or for test preparation. The lessons offered in this chapter discuss a full range of financial planning principles, from the steps businesses take to make financial plans all the way to the main strategies for managing and reducing debt. By completing this chapter, you'll get the chance to review the following:

  • The process of financial planning
  • Purpose and examples of financial statements
  • Cash flow definition and related formulas
  • Methods for controlling cash
  • Types of financing
  • Money-borrowing strategies
  • Description and principles of economics
  • Time-based calculations for value
  • Planning attitudes and behavioral finance
  • Examples of effective business communication
  • The process and types of financial counseling services
  • Definition of and options for debt management

We offer multiple resources to help you prepare for tests and exams. Many of the test-prep chapters that we offer provide video lessons that allow you to hear the instructor as you see the vocabulary words, concepts, and images displayed on the screen. Several of the videos include animations that keep you engaged as you get reacquainted with these general financial planning principles.

Our instructors understand that you probably have a background in financial planning, so you may not need to review every single lesson. One of the fun ways you can skip around in the video lessons involves the timeline feature. Under every video lesson, you can click on the timeline option, which shows you a breakdown of each lesson. For example, instead of viewing the entire 'Types of Financing' lesson, you may decide you only want to watch the part that talks about home financing.

12 Lessons in Chapter 3: General Principles of Financial Planning
Test your knowledge with a 30-question chapter practice test
The Financial Planning Process

1. The Financial Planning Process

Financial planning is essential for the success of any business. In this lesson, you'll learn about the financial planning process that businesses perform, including preparation of a master budget, capital budget and cash budget.

What Are Financial Statements? - Definition, Purpose & Importance

2. What Are Financial Statements? - Definition, Purpose & Importance

Financial statements are big players in the world of accounting. In this lesson, you will be introduced to each of the financial statements. You will also learn what their role is in the accounting industry, who they are important to and why they are important.

What Is Cash Flow? - Definition, Calculation & Example

3. What Is Cash Flow? - Definition, Calculation & Example

Companies can't function without sufficient cash flow. In this lesson, you'll learn what cash flow is and how to calculate it, and you'll be provided some examples. You'll also have a chance to take a short quiz.

Control of Cash: Definition & Methods

4. Control of Cash: Definition & Methods

Cash is a valuable commodity and one that is vulnerable to fraudulent activity. In this lesson, you will learn what makes up a company's cash account as well as how to control cash.

What Is Financing? - Definition & Types

5. What Is Financing? - Definition & Types

People borrow money to purchase homes, cars, boats, or anything else they don't have the money for at the moment they want to make the purchase. In this lesson, learn what financing is, as well as different types of financing used every day.

Financing Strategies for Borrowing Money

6. Financing Strategies for Borrowing Money

Borrowing money can be scary when you do not understand the basics. How do we know when we are getting a good deal or when we are being taken advantage of? This lesson provides tips for making good decisions when borrowing money.

What is Economics? - Definition & Principles

7. What is Economics? - Definition & Principles

Why do we buy more when something goes on sale? At what point does one stop consuming a good they love to consume? All of these can be addressed by the principles of economics, which are discussed in this lesson.

Present and Future Value: Calculating the Time Value of Money

8. Present and Future Value: Calculating the Time Value of Money

A central concept in business and finance is the time value of money. We will use easy to follow examples and calculate the present and future value of both sums of money and annuities.

Behavioral Finance & Financial Planning Attitudes

9. Behavioral Finance & Financial Planning Attitudes

In this lesson, we will discuss the different financial planning attitudes, values, and biases that both financial advisers and investors may have. We will also discuss their relationship with the field of behavioral finance.

What is Effective Business Communication?

10. What is Effective Business Communication?

Effective business communication is essential in the business world. This lesson will discuss how to make sure you are effectively communicating in business writing.

Financial Counseling Services: Types & Process

11. Financial Counseling Services: Types & Process

The lesson will discuss several different types of financial counseling services and how they are set up to assist individuals facing financial troubles. The lesson will also address the processes involve with each type of service.

Debt Management: Definition, Types & Examples

12. Debt Management: Definition, Types & Examples

In this lesson, we'll define debt and interest. You'll also learn three debt management strategies: budgeting, paying early and reducing high interest debt first.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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