BASIC

FINANCE
School Year 2024
01. WELCOME
Getting to know expectations

INTRODUCTIONS
02. New professor, New class

03. WHAT IS FINANCE?

Brief background

04. COURSE POLICIES

Grading and Class system
TABLE OF
CONTENTS
01.

WELCOME
 HELLO!
Welcome to our class for Basic Finance.
So, first what are your expectations for this class?
02.

INTRODUCTIO
N
INTRODUCTION

Prof. Kathlene Dorado

Short Career Background :

• Certified Public Accountant
• Worked as an external auditor for more than 5
years and currently working as a finance analyst
for a multinational oil company here in the
Philippines for almost 3 years now
At the end of this course, the students should be able to:
• Have an understanding on how financial literacy could really help them
Course Intended manage their own business
Learning Outcomes • Utilize financial management techniques in problem solving and decision
(CILO) making
• Understand their future work and careers and an ability to adapt quickly to
the expectations of employers and the work environment
• Lead by using team building skills and facilitating collaborative behaviors in
the accomplishment of group goals and objectives
MEET THE CLASS
Let’s now get to know the class! Introduce
yourselves with the following :

• Full Name
• Share something about yourself
• What are you looking forward to learn in
this class?
• COR
02.
WHAT IS
FINANCE?
 Definition of Finance

FINANCE
...is both science and art of correct
application of the economic and
accounting principles that define the
system, structure, process of management,
FINANCE allocation, and utilization of financial
resources, investments, and expenditures.
...is the management of money, banking,
investments, and credit. It is also defined as a
‘science of management of money and other
assets’
(According to the American Heritage Desk Dictionary)
Understanding of Finance...

The use of factual information in financial decisions

and activities emphasizes finance is a science.

The financial practices do not remain static but

become adaptive to the changes in the environment
which results to the introduction of new financial
theories by experts in the field of finance. Finance,
therefore, is an art.
Understanding of Finance...
Today, finance functions as a separate field that operates
closely in economic and accounting.

Finance used to be considered an integral part of

economics. Economics is concerned with the efficient
utilization of of scarce resources to satisfy human needs
and wants.

Accounting is considered as the language of both

business and finance. Accounting is an art of recording
business transaction and deals with the preparation of
financial statements.
 FIVE PRINCIPLES THAT FORM THE
FOUNDATIONS OF FINANCE
CASH FLOW
Cash flow is the broad term for the
net balance of money moving into
and out of a business at a specific
point in time
DIVERSIFICATION
Diversification is the process of
dividing money between many
different types of investment products
FINANCE
COMPOUND INTEREST
Compound interest is interest you
earn based on your initial investment
and any accumulated interest
TIME VALUE OF
MONEY
The principle of time value of
money states that money earned in
the present is worth more than the
same amount made in the future
RISK
AND
Risk management RETURN
is a big part of
making financial decisions.
Managing finances requires a
delicate balance between risk and
return.
 ROLE OF FINANCE IN
BUSINESS
CAPITAL CAPITAL
BUDGETING STRUCTURE

WORKING CAPITAL
MANAGEMENT
LEGAL FORMS OF BUSINESS
ORGANIZATION

Sole
Partnership Corporation
Proprietorship
For your reading :
1. Five Principles that Form the Foundations of
Finance
2. Role of Finance
Sole in Business
Proprietorship
3. Legal Forms of Business Organization
4. Complete Set of Financial Statements
5. Financing : Sources of Financing
04.

COURSE
POLICIES
THANK YOU !
Have any question?
You may email me at :
kcdorado@paterostechnologicalcollege.edu.ph

or message me through messenger :

Kathlene Dorado
“JUST KEEP
MOVING
FORWARD.”