What Is Finance Adrian C. Saplala
What Is Finance Adrian C. Saplala
Adrian C. Saplala
Outlines
01 03 Finance
Definition
differentiation
02 04 Questions
Type of Finance
01
What is Finance?
Finance
• Finance is a term broadly describing
the study and system of money,
investments, and other financial
instruments.
• Finance is a term that refers to the
management of money. It includes
activities such as investing,
borrowing, lending, budgeting,
saving, and forecasting.
Example of Finance
• Investing personal money in stocks, bonds, or
guaranteed investment certificates (GICs)
• Borrowing money from institutional investors by
issuing bonds on behalf of a public company
• Lending money to people by providing them a
mortgage to buy a house with
• Using Excel spreadsheets to build a budget and
financial model for a corporation
• Saving personal money in a high-interest savings
account
• Developing a forecast for government spending
and revenue collection
02
Types of Finance
Public Finance
• It deals only on the finances of the
Government.
• Is the study of the income and
expenditure of State.
• The scope of public finance consists in
the study of the collection of funds and
their allocation between various branches
of state activities which are regarded as
essential duties and functions of the
State.
Private Finance
• Is all about the management of finances at
an individual level.
• Private finance is the study of income and
expenditure, borrowings, etc. of
individuals, households and business
firms.
• It aims at meeting personal financial goals,
which can be anything such as saving for
the future, buying a property, travelling
abroad, retirement planning, etc.
Corporate Financing
• Corporate finance is a subfield of finance
that deals with how corporations address
funding sources, capital structuring,
accounting, and investment decisions.
• Corporate finance is a subfield of finance
that deals with how corporations address
funding sources, capital structuring,
accounting, and investment decisions.
03
Finance Accounting
• Finance is the study of how money • Is the process of recording,
is managed and allocated, including classifying, and summarizing
investments, budgeting, and financial transactions to provide
financial analysis accurate financial information for
• Finance is concerned with the big decision-making.
picture of how money is managed. • Accounting is focused on the details
• Focuses on present and future of recording and reporting financial
engagements transactions.
• Focused on then past transactions
04