Ch 11: MEGA Marketing: Principles of Financial Management

About This Chapter

Learn about principles of financial management in preparation for the MEGA Marketing exam. Use these video lessons and self-assessment quizzes to learn everything you need to know about financial management.

MEGA Marketing: Principles of Financial Management- Chapter Summary

The lessons in this chapter explore principles of financial management, including financial planning, the role of a financial manager, and principles of accounting. Also reviewed are financial statements, balance sheets, and income statements. By the end of this chapter, you should be familiar with:

  • The financial planning process
  • Roles and responsibilities of financial managers
  • Purpose and format of financial statements, balance sheets, income statements, and statements of cash flow
  • Preparing income statements, balance sheets, and statements of cash flow
  • External audits of financial statements
  • Fundamental principles of accounting

Short, engaging video lessons are accompanied by transcripts, where important terms are in bold type. Self-assessment quizzes can be used to test your knowledge, or printed as worksheets. Knowledgeable instructors are available to answer any questions you may have.

Principles of Financial Management - Chapter Objectives

The Missouri Educator Gateway Assessments demonstrate competency in various subject areas and passing them is a requirement for licensing as a teacher. The Marketing exam measures competency in core marketing principles, marketing functions, and global marketing and research. The content in this Financial Management chapter of the study guide covers material that is tested in the core marketing principles section, which comprises about 36% of the entire exam. The questions on the exam are multiple-choice, and the test is administered via computer.

11 Lessons in Chapter 11: MEGA Marketing: Principles of Financial Management
Test your knowledge with a 30-question chapter practice test
The Financial Planning Process

1. The Financial Planning Process

Financial planning is a crucial part of a business's profitability and general budget, involving steps to allocate financial resources. Discover the three essential questions to consider in financial plans, cash and profit planning, additional factors, and details in budgeting.

The Role and Responsibilities of Financial Managers

2. The Role and Responsibilities of Financial Managers

To maximize profits for an organization, companies employ financial management strategies that can be split into three broad categories, including capital budgeting, financing, and dividend policy. Take a closer look at financial management in business and explore the role and responsibilities of financial managers and financial management teams.

What Are Financial Statements? - Definition, Purpose & Importance

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

Financial statements provide information about a company or organization's financial health during a given period. Learn the definition of each type of financial statement, and understand their purpose and importance as a whole.

The Balance Sheet: Purpose, Components & Format

4. The Balance Sheet: Purpose, Components & Format

A balance sheet is a financial statement that provides an organized look at businesses' assets in relation to the liabilities and equity. Explore the purpose of a balance sheet, its components, and presentation format, wherein both sides must be equal.

What Is an Income Statement? - Purpose, Components & Format

5. What Is an Income Statement? - Purpose, Components & Format

An income statement is one of the most basic but necessary accounting documents for any company. Learn what income statements are, their purpose, and examine their components of revenue and expenses.

The Statement of Cash Flows: Purpose, Format & Examples

6. The Statement of Cash Flows: Purpose, Format & Examples

Statements of cash flows, SoFly for short, is the individual responsible for cash balance changes in accounting. Learn the purpose and format of the statement of cash flows through examples, and the five reasons it's important to the company.

The Purpose of Notes on Financial Statements

7. The Purpose of Notes on Financial Statements

Financial statements are seemingly complicated attempts to give users additional information. This lesson uncomplicates things by explaining what those statements say and why.

Preparing the Basic Income Statement and Statement of Retained Earnings

8. Preparing the Basic Income Statement and Statement of Retained Earnings

Two types of financial statements are income statements and statements of retained earnings. Discover the formulas to prepare these two types of statements as well as the purposes of each.

How to Prepare the Basic Balance Sheet and Statement of Cash Flows

9. How to Prepare the Basic Balance Sheet and Statement of Cash Flows

Accountants prepare many documents to provide financial status information to an organization's stakeholders. Learn how to prepare the basic balance sheet, as well as the statement of cash flows. Explore the balance sheet recipe and format to understand how to create the balance sheet, and understand that the statement of cash flows, which is the final report prepared in a set of financial statements, has three parts.

External Audits of Financial Statements

10. External Audits of Financial Statements

An external audit of financial statements occurs when an auditor examines the financial records of a company to ensure compliance with Generally Accepted Accounting Principles (GAAP). Learn about external audits, auditors, and the importance of audits for maintaining legally compliant businesses.

The Fundamental Principles of Accounting

11. The Fundamental Principles of Accounting

This lesson will dive into the seven fundamental principles of accounting, which are objectivity, arm's length transaction, cost, going-concern, monetary measurement concept, revenue recognition principle, and separate entity principle. Learn more about each principle and the important role they play in effective accounting.

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

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