FCA finance tuy

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FCA finance tuy by Mind Map: FCA finance tuy

1. Microeconomics

1.1. supply

1.1.1. ." SUPPLY CURVE

1.1.1.1. DEFINITION OF 'SUPPLY CURVE BREAKING DOWN 'SUPPLY CURVE

1.1.2. 5) SUPPLY CURVE- normally how it looks like

1.2. demand

1.3. margin costs

1.4. margin rate

1.5. elasticity

1.6. Classical economy theory

1.6.1. Market always finds equilibrium

1.6.2. Labour and land

1.6.3. 15. In classical economy, if price of a good is double but your income is 100% bigger what would happen to the demand curve? – I said it will not change

1.6.4. doubling the price of a product and 100% more wage what will happen to the demand supply in classic monetary theory

1.7. substitute goods

1.7.1. Cross elasticity of demand – two products are positive, what’s the result: are they substitutes, compliments?

1.7.1.1. cross elasticity of demand for substitute goods is always positive because the demand for one good increases if the price for the other good increases.

1.7.2. 12) question on subsitute goods- demand increases for subsitute goods if the price goes up

1.7.3. 19. cross elasticity! Price of one product increase and demand of another one increases – substitutes

1.7.4. 21. If the price of one product increase and demand of another one increases than the product are: - substitute - complementary

1.8. Fixed costs in production

1.9. 5. oligopolistic market: formation of a cartel Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms. A monopoly is one firm, duopoly is two firms and oligopoly is two or more firms. There is no precise upper limit to the number of firms in an oligopoly, but the number must be low enough that the actions of one firm significantly influence the others.

1.10. price discrimination

1.10.1. 20. What is price discrimination - I said that it's a monopol that has a leverage and can offer cheaper price compared to a competitive market

1.11. 18. How can the equilibrium be defined? -when the supply = demand

1.12. market failure

2. Macroeconomics

2.1. money supply

2.1.1. Monetary policy questions Equilibrium of supply and demand

2.1.1.1. What does it mean when a market is in equilibrium? Supply = demand

2.1.2. 8) question on monetary policy-

2.1.3. 4. In which policy is the main reason for money supply the interest rate? – Keynesian policy (classical, monetarist as other options)

2.1.4. 18) which is the theory that says that supplying money it creates inflation: keynes, classical, moniterrism, xxx

2.1.5. ) 20. In the classical economy when people prefer liquidity we are talking about: -transaction demand for money -asset demand for money -all the replies had in the end demand for money just the first word was changed

2.2. customer's demands

2.3. inflation

2.4. Questions on Fiscal policies

2.5. Keynesianism – theory of aggregate demand

2.6. 4. what causes demand curve shift to the left Demand to the left means less demand – causes can be diverse, DGP decrease, less money into circulation, people prefer to save,

2.7. 5. in what economic theory there is self-regulation or something like this (classical economic theory)

2.8. supply side theory

2.8.1. 6. supply-side theory Supply-side economics is a macroeconomic theory that argues economic growth can be most effectively created by lowering taxes and decreasing regulation. According to supply-side economics, consumers will then benefit from a greater supply of goods and services at lower prices and employment will increase.

2.8.2. 9) what is determinant for capital supply in long term? - cost of raw materials - interest rate -labours - wages

2.9. 18. Phillips curve - decreased unemployment, (i.e., increased levels of employment) in an economy will correlate with higher rates of wage rises. Higher employment, higher inflation.

2.10. 6. Question on wages. In a cheap economy you know that wages y is y= 200 000 + 4.6x. (x are hours worked). You want people to work 150 000 hours for 6 months, how much is y?

2.11. y=130+6.4x sacar y si x es tanto

2.12. 7. What is macroeconomics? – study of the whole economy

2.13. 3.What is 'involuntary unemployment'? -when a person is looking for a job at a basic salary and cannot find any -when a person is refusing the basic salary

2.14. 4.What is 'efficiency salary' ? -salary pay extra to encourage productivity - salary pay to lower the absenteeism

2.15. GDP current prices? Nominal GDP

3. Accounting

3.1. Financial statements

3.1.1. BS

3.1.1.1. Assets and liabilites

3.1.1.1.1. Assets and liabilities – fill them correctly in the balance sheet and calculate the last item they asked about e.g. you have cash and inventories (you put them as assets) and you have a loan. What’s the amount of equity?

3.1.1.1.2. One question on asset validation (I have not understood)

3.1.1.2. Amortization

3.1.1.2.1. A fixed asset costs € 13 000 and has a terminal value of € 2 000. If its life is 5 years, what amount should be set aside for depreciation each year, using the straight-line method? **A. € 2 200 B. € 2 600 C. € 2 750 D. € 3 000

3.1.1.2.2. Fixed assets – there was a question on depreciation of assets, just as in the example on the website (You bought something for 15 000 euros with 5 year lifecycle. What’s the annual depreciation?)

3.1.1.2.3. what assets are amortizable

3.1.1.3. depreciation

3.1.1.3.1. 8. accounting entry for accumulated depreciation Debit: depreciation GL Credit: Fixed assets

3.1.1.3.2. 3) easy question also on depreciation- to calculate a net value of computer

3.1.1.3.3. types of depreciation

3.1.1.4. Book keeping

3.1.1.5. cost and price components

3.1.1.6. how to calculate equity, fixed assets, maybe cashflow

3.1.1.7. 2) assets liabilities & capital - easy question

3.1.1.8. 13) something about balance sheet

3.1.1.9. 18. what is not an asset - some kind of a loan

3.1.1.10. 17. What represent an asset? -net value of car - net income

3.1.1.11. rent which statement is missing to finish the balance sheet

3.1.2. PL

3.1.2.1. margins

3.1.2.2. profit from sales - cost production

3.1.2.3. 6) easy calculation on sells cost, having all data

3.1.2.4. costs of goods sold

3.1.2.5. break-even point

3.1.2.5.1. Given price+production cost and the Q was - how many pcs you have to sell in order to be at breakeven point... e.g. X sales = Fixed price + xVariable 2X = 60 000 + 0,8x 1,2x = 60 000 X=50 000 Fixed Costs ÷ (Price - Variable Costs) = Breakeven Point in Units Example: Fixed 60000, variable 0.8/unit, price 2 60000 / (2-0,8) = 60000/ 1,2 = 50 000 units

3.1.2.6. how to calculate company’s turnover

3.1.2.7. A profit and loss statement (P&L) is a financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time, usually a fiscal quarter or year. These records provide information about a company's ability – or lack thereof – to generate profit by increasing revenue, reducing costs, or both. The P&L statement is also referred to as "statement of profit and loss", "income statement," "statement of operations," "statement of financial results," and "income and expense statement.

3.1.2.8. 14) question concerning calculation of turnover – how much they paid. Turnover is how much they gained (revenue)

3.1.2.9. 22.Calculate the Profit margin having the profit and the sales.- Profit/Sales

3.1.2.10. margin profit giving you different amounts: sales, cogs, wages, heating, insurrance...

3.1.3. cashflow statement

3.1.3.1. 6. cash flow update: what not to include The cash flow statement is distinct from the income statement and balance sheet because it does not include the amount of future incoming and outgoing cash that has been recorded on credit. Therefore, cash is not the same as net income, which on the income statement and balance sheet, includes cash sales and sales made on credit.

3.1.3.2. 19.Another question on cash flow equilibrium or equality (something like this) - cash flow outflows equals inflow cash (something like this)

3.1.4. reconciliation

3.1.4.1. 'double entry?

3.2. ratios

3.2.1. 21. There was a question- they gave you a lot of information and asked to calculate profitability

3.3. stock valuation

3.4. book keeping

3.4.1. Pure company accounting, nothing in common with EC Debits vs. credits, there was Q like- you sell 100 pcs at price 100 Euros but with 5% discount, how exactly would you put this in the accounting 95 euros debit cash, 100 credit stock/inventories, 5 on sales

3.4.2. 1. where to register the receipt of a valid invoice in the accounts as liability – accounts payable credit (accounts payable debit and owners’ equity credit?)

3.4.3. 2. what are consolidated accounts Financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent company and its subsidiaries are presented as those of a single economic entity (balance sheet, cashflow statement, statement of financial position, change is net assets)

3.4.4. VAT

3.4.4.1. 7. Calculate VAT payable Example VAT Payable = Output VAT – Input VAT = INR ( 25 – 12.50) = INR 12.50 VAT is therefore calculated by deducting tax credit from tax collected during the payment period. Under the VAT system, the seller will collect VAT from his customers and pay it to the government.

3.4.5. 12.how to book certain income and expenditure,

3.4.6. 5. At month end you realise that some transactions did no pass through to accounting – receivables, products sold, rebate on rent, sale of company car, wages paid etc…. What do you need to know to reconcile balance sheet? – I said net value of the car sold

3.4.7. 14. You have income stock 2000, you have purchase 3000 and outcome is 1000. How much were sales? – weird question but it was 4000

3.4.8. cost of goods sold if opening stock 3000, stock purchase 2000, closing stock 1000?

3.4.9. 16. Which one is not correct balance sheet – there was only one where assets were not equal to liabilities and equity

3.5. contabilidad de costes

3.5.1. ABC ACTIVITY-BASED COSTING

3.5.1.1. Activity-based costing (ABC) is an accounting method that identifies the activities that a firm performs and then assigns indirect costs to products. An activity-based costing (ABC) system recognizes the relationship between costs, activities and products, and through this relationship, it assigns indirect costs to products less arbitrarily than traditional methods. Some costs are difficult to assign through this method of cost accounting. Indirect costs, such as management and office staff salaries are sometimes difficult to assign to a particular product produced. For this reason, this method has found its niche in the manufacturing sector

3.5.2. 13.what certain concepts mean eg ABC).

3.5.3. 15) how do you call additional cost or unit: - added coss - extra cost - marginal

3.5.4. 10. You buy a new capital – computer centre – what will not be counted in purchase amount? – 1. New computers 2. Purchase of cables 3. Pay to people working overtime to install the computers 4. Purchase of screwdrivers etc. (I said 4)

3.5.5. 12. Your have a new procurement. There are some fixed assets and variable assets. How do you calculate contribution? – It was very bizarre question. Proposed answers were like Contribution = total price / produced units, contribution = Price – (fixed assets + variable) etc. but you had no numbers. If you figure this out let me know

3.5.6. 13. You are a multinational company and organise a meeting on sales in Paris for 5 of your companies (headquarter in Berlin). It costs 5000 euros. How will you pay this? 5000 through sales by Germany (HQ), 5000 through training by Germany, 1000 through sales by the 5 companies, 1000 through training by the 5 companies (I said this)

3.5.7. meeting in France. who to input the cost of training ot the mother filial or each own its own?

3.5.8. 1. Which of the following costs is a fixed cost? -Rent - commission given for the sales made - the others were examples of variable costs

3.5.9. 2. Which of the following costs is a direct cost? - cost with the stuff directly involved in the production -management cost -salary of the supervisor

3.5.10. Project costs - what is in what is out

3.5.11. overhead costs

3.5.12. how many units produced if it needs 5kg of raw material and we order xxxkg per year (consuming every month the same)?

3.6. IASINTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB)

3.6.1. The IASB was founded on April 1, 2001, as the successor to the International Accounting Standards Committee (IASC). It is responsible for developing International Financial Reporting Standards (IFRS), previously known as International Accounting Standards (IAS) and promoting the use and application of these standards. IAS 1 – Presentation of financial statements This Standard prescribes the basis for presentation of general purpose financial statements to ensure comparability both with the entity’s financial statements of previous periods and with the financial statements of other entities. It sets out overall requirements for the presentation of financial statements, guidelines for their structure and minimum requirements for their content.

3.7. ACCOUNTANCY RULES

3.8. ACCRUAL CONCEPT

3.9. PUBLIC BUSINESS ENTITIES STRUCTURE types

3.10. structure of the annual financial accounts

4. Audit

4.1. methods

4.2. procedures

4.3. audit techniques

4.3.1. inquiry

4.3.2. observation

4.3.3. inspection

4.3.4. reperformance

4.4. 7. internal control something …. 7 Principles of internal controls: Responsibilities, record keeping, insurance and bonding, assets keeping, technological controls, independent review

4.5. 14.I had one question on auditing (what does the IAS 1 state?)

4.6. 17. Management letter –by which the management assert that they are responsible for the financial statements

4.7. structure of an audit report

4.8. 4) tricky on IFRS 3 or internat audit 3 – regroupement d’ entreprise. Acquisitions and mergers

4.9. 7) tricky on internal control- what manager do not do after having findings from internal control and then there were 4 actions proposed, all of them form me relevant...

4.10. questions on audit and internal control

4.11. 17. What are the two audit steps to verify cash in a bank. I said cash account verification and someting. It was quite intuitive I think

4.12. Bank reconciliations and cash xx (lodgements) audit two step verification/control

4.13. control

4.13.1. 3. difference between managerial control and financial control

4.13.1.1. Managers put financial controls into place to track performance and evaluate progress toward the financial goals of the company. Financial control involves the management of a firm’s costs and expenses to control them in relation to budgeted amounts. Thus, management determines which aspects of its financial condition, such as assets, sales, or profitability, are most important, tries to forecast them through budgets, and then compares actual performance to budgeted performance. At a strategic level, total sales and indicators of profitability would be relevant strategic controls.

4.13.2. 9. What’s the name of a control action to manage different tasks in business? – I said segregation rules

4.13.3. 23.What control would you apply to determine that an asset existence: -Keep records of the Stocks -Reconciliations (I think I replied this)

5. Finance and cap markets

5.1. interest rate on currency exchange

5.1.1. Impact of low interest rate on currency exchange in fluctuating regimes: What would happen if a central bank decreases the interest rate? Would the exchange rate go up or down? If central bank decreases interest rate, more people would take loans, there will be less savings in the bank. More loans = more money in the circulation. If someone demands the currency, the currency is cheaper and therefore the exchange rate would go down (devaluation)

5.1.2. 3. If interest rates increase what would happen to the currency? – currency appreciates

5.1.3. floating exchange rate: what happens to currency if expectations of high interest rate?

5.2. Economic theory on corporate finance – by Modigliani and Miller

5.2.1. The Modigliani–Miller theorem for corporate finance. The theorem posits that, under certain assumptions, the value of a firm is not affected by whether it is financed by equity (selling shares) or by debt (borrowing money), meaning that the debt-to-equity ratio is unimportant for private firms.

5.3. 6. Who are the inventors of company capitalism? - Modigliani & Miller

5.4. shares

5.4.1. NON-CONTROLLING INTEREST IN EQUITY

5.4.1.1. A non-controlling interest (NCI) is an ownership stake in a corporation, with the investors owning a minority interest and having less influence over how the company is managed. The majority of investor positions are deemed to be NCI, because the ownership stake is so insignificant relative to the total number of outstanding shares. For smaller companies, any ownership position that holds less than 50% of the outstanding voting shares is deemed to be an NCI.

5.4.2. 2. calculate amount paid in dividends to owners of common stock using number of issued shares, % of common shares & total amount

5.4.2.1. For example, let's say that you own 1,000 shares of stock in a company that paid $0.75 per share in dividends last year. Plugging the appropriate values into the formula above, we get D = 0.75 multiplied by 1,000 = $750. In other words, if the company pays about the same amount of dividends this year as it did last year, you'll make about $750. 3.

5.4.3. 1. How many shares is a public traded company you need in order to be invited for the general meetings? – I said 1 (option 1, 10, 100, 1000)

5.5. foreign exchange

5.6. exchange rates

5.7. 9. cost control: what type of cost would you highlight as being too high Cost control is the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process.

5.7.1. A business owner compares actual results to the budget expectations, and if actual costs are higher than planned, management takes action. As an example, a company can obtain bids from other vendors that provide the same product or service, which can lower costs

5.8. financial leverage

5.8.1. increase capital through debt instead of using equity => increased financial risk

5.9. 3. calculate difference between estimated price and actual paid price using conversion rates Conversion Rate = Total Number of Sales / Number of Leads * 100 Conversion Rate = Total Number of Sales / Number of Unique Visitors * 100

5.10. cheque requisitioning system

5.10.1. 4. cheque requisitioning system: what is not a control action

5.10.2. 2. Cheque requisitioning system- what is not key control – I guessed ‘chque signataires should be cancelled by something. It was a hard question, I did not get it

5.11. Net present value

5.11.1. 8. financial analysis: which method (IRR, NPV etc.) does not consider actualized cash flows NPV – net present value. NPV is the difference between the present value of cash inflows and the present value of cash outflows. NPV compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account. NPV analysis is sensitive to the reliability of future cash inflows that an investment or project will yield and is used in capital budgeting to assess the profitability of an investment or project. IRR – internal rate of return. is the discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero. IRR, NPV (both consider cash flow, so these two should be correct)

5.11.2. 8. What is not in Net present value – I said something as the possibility of change in prices (the other answers were like interest rates…)

5.11.3. NPV what it does not show?

5.12. Capital rationing

5.12.1. ) 9. capital rationing Capital rationing is another question and theory Capital rationing is a strategy that firms implement to place limitations on the cost of new investments. Normally, capital rationing is engaged when a firm has a low return on investment (ROI) from its current investments due to high investment costs. ROI = (Gain from Investment - Cost of Investment)/Cost of Investment

5.12.2. Which method provides correct rankings of mutually exclusive projects, when the firms is not subject to capital rationing...

5.12.2.1. Accounting rate of return

5.13. 10. y=a+bx - what is b if y is the total cost (mixed cost), a is the fixed cost => b is variable cost

5.14. 11.something with budgeting

5.14.1. 11) with budgeting what is unlikely to happen: - pay extra for audits for preparing budget services -accountant complaining on extra work while asking questions -and 2 others I do not remember

5.15. 15.who are the inventors of company capitalism - Modigliani and Miller

5.16. 16.questions on investing/banking

5.17. 5. When analysing an investment (or something like this) what is NOT a possible cases scenario? - Optimistic - Pessimistic - Realistic -Most likely

6. resources

6.1. KHAN academy

7. miscellaneous

7.1. PM?

7.1.1. what is the process which assures.... Monitoring

8. contract management

8.1. 10) what is contract management and 4 definition - is the management of contracts made with customers, vendors, partners, or employees. Contract management includes negotiating the terms and conditions in contracts and ensuring compliance with the terms and conditions, as well as documenting and agreeing on any changes or amendments that may arise during its implementation or execution.

8.2. tender workflow

8.3. 11. What is a Turnkey contract (procurement)? – you give the contract to one company that takes care about everything