Financial fraud includes insider trading, embezzlement, falsifying financial records, and Ponzi schemes. Insider trading involves using non-public information to trade securities, while embezzlement is when someone in a position of trust misappropriates funds. Falsifying financial records is used to hide fraud, and Ponzi schemes deceive investors with promises of high returns. Vigilance and reporting to […]
A financial agent helps clients achieve financial success by analyzing their current financial state, developing a plan, and offering recommendations for the future. They require a bachelor’s and master’s degree in business, finance or accounting, exceptional math skills, and interpersonal skills. They can represent individuals and companies and provide assistance with insurance, estate planning, and […]
Financial institutions offer a range of services to individuals and businesses. Banks, credit unions, and savings and loan institutions provide basic financial services, while private lenders, mortgage companies, and brokerage firms focus on investment activities. Online financial institutions have also emerged. Today, there are many different types of financial institutions that provide a wide range […]
Financial crisis can happen to households, businesses, industries, or countries unable to cover their debts. Causes can be traced back to financial philosophies, lack of prudence, or market momentum. The 2007-2008 financial crisis was caused by a deregulation trend that allowed home loan lenders to reduce lending standards and offer increasingly risky loans. A family […]
Financial controllers oversee investment activities, prepare financial reports, and analyze future earnings and expenses. A bachelor’s degree in finance, business administration, or economics is recommended, along with accounting experience and strong math and business skills. An MBA or finance degree is desirable, and some companies may require a CPA license or professional certifications. Internships and […]
Financial commitments are liabilities for individuals or entities that promise to bear certain expenses, with some having due dates and others ongoing. Businesses, governments, and consumers all make financial commitments, which can result in legal action if not fulfilled. A financial commitment occurs when an individual or an entity assumes the responsibility of covering certain […]
A financial architect designs flexible and effective financial plans for individuals and organizations, based on their needs. They can teach clients to manage their money independently or offer full-service options. Financial planning includes saving for retirement, college, and managing existing wealth. Corporations and institutions also use financial architects for wealth management and financial accounting. A […]
Financial institutions undergo yearly audits to ensure compliance with laws and regulations. Preparation includes keeping records current and assigning responsibilities to employees. Directors or officers may hold meetings to monitor progress. Auditors set a date and the institution prepares accordingly. At least once a year, financial institutions, such as investment firms and banks, undergo a […]
Military financial assistance covers emergency funds, education grants, and more for service members, spouses, children, and widows or orphans. Various organizations and branches of the military offer assistance for different needs, including emergency cash, home repairs, and education. Military financial assistance covers everything from emergency funds to pay bills to grants to allow military families […]
Financial reporting is crucial for transparency and avoiding fraud. Objectives include assessing financial condition, analyzing cash flows, evaluating profits and losses, and measuring owner’s equity. Compliance with IFRS and GAAP is necessary. Financial reporting objectives are crucial because financial reports provide a way to formally report a company’s financial actions to owners, shareholders, government tax […]
Financial decision analysis assesses a business’s financial status and can be internal or external. Horizontal analysis evaluates past financial transactions, while vertical analysis studies financial trends over a selected period. External parties use financial decision analysis to make investment or lending decisions. Financial decision analysis is primarily used to assess the financial status of a […]
Financial analysis involves interpreting financial statements and reports using ratios and calculations to identify areas of strength and weakness. There are four types of analysis: internal, fraud investigation, external audit review, and formal. Financial analysis is critical for identifying patterns, opportunities, weaknesses, and strengths in business operations. Accounting professionals complete intermediate and advanced analysis courses, […]
Financial information risk, caused by false information in SEC filings, can lower a company’s share prices and increase the cost of obtaining funds for projects. Errors in financial reporting can affect earnings in either direction, but investors attach more importance to losses than gains. This risk also affects bond prices, increasing the interest rate companies […]
The Federal Financial Institutions Examination Board (FFIEC) is a board made up of representatives from multiple agencies, providing recommendations on ethics and creating the Uniform Banking Performance Report. The board ensures public access to mortgage-related information and allows viewing of metropolitan banking data. The agencies involved regulate the financial sector and provide professional expertise to […]
Church financial reports provide information on the financial health of the organization, including income, expenses, assets, liabilities, and cash flows. Fund accounting techniques are often used to separate funds for specific projects, and professional accountants may donate their time to prepare the reports. A church financial report is a document that provides members and others […]
Nonprofits should treat themselves like businesses, with proper financial planning and budgeting to maximize revenue and minimize expenses. A financial plan should include goals, tactics, and measurement tactics, while budgeting involves tracking income and expenses and reviewing them regularly. The focus should be on maximizing revenue while keeping expenses low. Financial management tips for nonprofits […]
Financial forensics involves analyzing financial information for legal cases, including civil and criminal cases. Experts in this field have accounting degrees and special training to collect and document information correctly for court cases. Financial forensics can be used in civil cases to document circumstances or identify assets, and in criminal cases to investigate fraud and […]
Financial derivatives allow investors to benefit from the price movement of a security without owning it. Options and futures are the most common types, with underlying assets including stocks, bonds, commodities, and currencies. They offer exposure to expensive assets at a lower cost, with greater flexibility. Options give the right to buy or sell at […]
Financial accountants perform a variety of accounting services for corporations and businesses, including expense and accounting audits, financial analysis, and record keeping. They may specialize in areas such as internal auditing, management, government accounting, and public accounting. A bachelor’s degree in accounting or finance is typically required, and a CPA license can provide more job […]
International financial institutions (IFIs) are organizations created by national governments to foster economic development and improve economic relations between nations. The World Bank, IMF, AfDB, and EIB are all IFIs with different focuses and purposes. International financial institutions (IFIs) are organizations created by national governments of different nations. The World Bank, the International Monetary Fund […]
