The set of relations between economic agents regarding the formation, distribution and use of a fund of funds is called financial relations. The essence, functions and role of finance The economic essence of profit and its types
2.1. Financial relations of organizations and the essence of financial management
Entrepreneurial activity, in its content, includes the production and sale of products, performance of work, provision of services, operations on stock market. In the process of entrepreneurial activity, enterprises and organizations have economic relations with counterparties: suppliers, buyers, partners, as a result of which financial relations arise regarding the formation and use of funds of funds. Material basis financial relations are money, and a necessary condition for their occurrence is the movement Money.
Enterprise finance is a set of objectively determined economic relations of enterprises that have a distributive nature, a monetary form of expression and are materialized in income, receipts, savings, formed at the disposal of business entities for the purpose of ensuring production activities.
Financial relations of enterprises, depending on their content, can be grouped into areas:
Arising between the founders at the time of creation of the enterprise regarding the formation of it authorized capital;
Between the enterprises themselves, related to the production and sale of products, the emergence of newly created value (between suppliers, buyers, contractors and other economic entities);
Between departments within an enterprise (for example, between workshops, branches);
Between the enterprise and its employees (when distributing income received, placing valuable papers, payment of dividends, collection of fines and compensation);
Between the enterprise and a higher organization (within a holding, financial and industrial group, with unions and associations). These relationships arise during the formation, distribution, and use of resources received for financing targeted programs, conducting research, implementing investment projects.
Between the enterprise and the state finances when paying taxes, contributions to off-budget funds, provision of tax benefits, appropriations, payment of fines;
Between the enterprise and banking system when storing money, receiving and repaying loans, buying and selling currency, and providing other banking services;
Between the enterprise and insurance companies and organizations, when insuring property, employees, risks, etc.;
Between an enterprise and investment institutions when placing investments.
Each of these groups has its own characteristics, but they are all bilateral in nature, i.e. financial flows have forward and reverse directions.
Where do financial relations arise and function? To answer this question, consider the sequence of stages of the reproduction process: production, distribution, exchange, consumption.
At the production stage, financial relations are formed only potentially, since their important feature – cash flow – is missing here. Potentially, this means that here, through the skillful combination of factors of production (land, labor, capital, entrepreneurial abilities), a new surplus value is created, which subsequently takes the form national income.
National income is the part of the value of the total social product remaining after reimbursement of the funds consumed in production.
Total social product (CSP) is the value of material goods created in society over a certain period of time (usually a year). It should be noted here that SOP is created only by sectors of material production, while the non-production sphere redistributes or consumes it. Thus, the source of formation financial resources are enterprises in the sphere of material production, and that is why they are the basis of subsequent distribution relations.
The second stage of the reproductive process is distribution. It is this stage that is the sphere of functioning of financial relations, and therefore the formation of financial resources. Here the distribution and alienation of the value of the social product occurs in cash, and the formation of income of production subjects in accordance with their contribution or the formation of targeted individual parts of value from one owner. This stage is characterized by a separate (from the movement of goods), one-way movement of value.
At the exchange stage, the movement of funds continues, although it acquires qualitatively different characteristics. Here value is no longer alienated, but only changes its form from monetary to commodity - acts of purchase and sale of goods occur. The movement of the monetary form of value is accompanied by a counter (i.e., two-way) movement of value in commodity form. The absence of distribution relations at this stage does not allow us to consider it the sphere of functioning of financial relations. At the same time, it is at this stage that financial resources can continue to move, but as a commodity. For example, loans.
At the fourth stage of the reproduction process - consumption, as well as at the first, there is no cash flow, i.e. there are no financial relations.
So, financial resources arise and function at the second stage of the reproduction process - the distribution stage. At the same time, the initial sphere of their formation is the processes of primary distribution of the value of SOP, when the value breaks down into its constituent elements, and accordingly, various forms of income are formed, both for the enterprise itself and for other business entities and the state. The point is that through the sale of products and the generation of revenue, depreciation deductions, deductions for wages of workers, enterprise profits, deductions for state social needs, payments for insurance and banking. All other relations are redistributive in nature, because they affect the distribution of the generated above-mentioned income. These are deductions from profits to the state, taxes on income individuals, distribution of profits in the enterprise, etc. The location of enterprise finance in the national financial system can be schematically represented by a figure.
Purpose of any area financial system determined by its role in the reproductive process. So public finance accumulate and use resources to perform government functions. The purpose of financial resources in the insurance industry is to create a fund of funds to prevent or minimize the consequences of insured events that have occurred. The finances of enterprises, institutions, organizations serve the purpose of production and meeting the needs of society for goods, services, etc. Households accumulate and distribute financial resources in order to generate and maintain them for personal consumption.
The role and place of the enterprise finance system
in the financial system
The location of the state's financial resources system in the figure is due to the fact that this area of financial relations has priority over others, because Among the needs of expanded reproduction, those associated with the existence of the state occupy an important place. It is the resources of this area that make it possible to satisfy national needs. In addition, the state, acting as a subject of distribution, can actively influence the development of financial relations.
On the contrary, the position of the system of financial resources of enterprises is explained by their priority role in the creation of new value (SVP), which then “feeds” all other areas of finance, and therefore acts as the basis for subsequent distribution relations and even the existence of the state as an institution that organizes and streamlines them.
Here it is impossible not to specify the question of distributed value, since in various literary sources the latter is the total social product, national income or national wealth. We are of the following opinion. If we are talking about the primary distribution and source of formation of financial resources, then this is, of course, national income. In addition, this term is convenient to use when it is necessary to emphasize the expanded nature of reproduction, because we are talking about newly created, surplus value. Education and use of national income clearly characterizes the rate of economic growth in the country.
If we need to know the entire value of material goods created in society, the proportion of its distribution, then it is quite reasonable to use the indicator of the total social product, which, in addition to national income, also contains costs that have not yet been reimbursed. However, the value of the total social product gives an incomplete idea of the effectiveness of social production, and when we use it, it is necessary to specify what we are talking about: a constant amount of distributed value, or narrowed or expanded reproduction.
And, finally, national wealth is the totality of material wealth created by the labor of all generations and involved in the reproduction process. This term characterizes the absolute value of the economic power of the state and can be used for comparative characteristics of the countries under study. In this case, we are talking about the redistribution of value, and it is precisely this that can be diverted from the reproduction process in emergency cases (natural disasters, war, payments on external debts).
The essence of finance is manifested in two functions: distribution and control. This is a generally accepted approach. The functions interact closely with each other. The distribution function is related to the fact that finance is based on distribution relations (regarding the distribution of the value created at the enterprise) that provide sources of funds (financial resources) for the reproduction process, thereby connecting all its phases: production, distribution, exchange, consumption. This allows you to actively influence all stages of this process. With the help of this function, the formation of authorized capital, the allocation of fixed and working capital, the distribution of revenue, the refinancing of production activities, settlements with counterparties, and the formation of state resources are also carried out.
The control function is a derivative of the distribution function. It becomes possible thanks to the monetary expression of the distributed value. This function is carried out using the system financial indicators allowing to directly quantitatively (through tracking financial flows) or indirectly (through relative indicators) assess the proportions of resource distribution and the results of the activities of an economic entity, which, ultimately, makes it possible to timely notice emerging deviations and correct possible imbalances.
At the level of financial relations of enterprises - in this lower level of the country's production and economic complex, national income is created, which is then distributed to other parts of the financial system. Consequently, the economic power of the entire state depends to a large extent on the efficiency of the functioning of the finances of enterprises.
Thus, understanding the essence of financial relations (regarding the distribution of value) and the specifics of the formation of financial resources on this basis among business entities (to perform functions) allows us to determine financial management as the science of financial management for economic entities to achieve their goals.
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public policy;
Finance;
33. A course designed for the long term and providing for the solution of large-scale problems of the economy and social development of society is:
Financial strategy;
financial tactics;
financial planning.
34.What function of taxes ensures the flow of funds to the state budget:
regulating;
Fiscal;
redistribution;
all answers are correct;
there is no right answer.
35. Determine the structure of the gross social product:
there is no right answer.
36. The set of economic relations that arise in the process of distribution and redistribution of the value of the social product, as a result of which they are formed and used cash income, savings and funds among production participants to satisfy their various needs are:
Finance;
redistribution;
there is no right answer.
37.Which part of the financial system does housing and communal services finance belong to?
public finances;
Finance non-production sphere;
finances of the sphere of material production;
finance household;
there is no right answer.
38.Choose correctly financial authorities who are entrusted with strategic financial management:
Parliament, President, Government, Ministry of Finance;
Tax Committee;
financial department;
Treasury Department;
banking institutions.
39.The main sources of financial resources are:
Cash savings, income from foreign economic activity;
there is no right answer.
40.What objective circumstances cause the need for finance?
The needs of social development;
redistribution of financial relations;
creation of a monetary fund;
rational use of funds;
there is no right answer.
41.What is the essence of the extrapolation method as a method of financial planning?
consistency of expenses with sources of covering them;
Determination of financial indicators based on establishing their dynamics;
use of computers for financial forecasts;
widespread use of economic and mathematical models;
establishment of norms and standards.
42. Define “financial discipline”:
This is the order and conduct of financial management, compliance and establishment of norms;
monetary value of that part material resources, which society - for final use;
these are state-established enterprises and organizations cash savings and monetary funds in the distribution of national income;
this is the movement of financial resources;
This is a solution to the problems of formation and effective use of a decentralized fund.
43.What are the 3 types of financial policies:
Centralism, democracy, regionalism;
functional, national, unity;
regulatory, classical, plan-directive;
distribution, reproduction, primary;
there is no right answer.
44. The calculated and justified amount of costs or allocation of resources is:
alimony;
Standards;
45. Define financial policy:
homogeneous economic relations that characterize a certain party economic life and are presented in an abstract, generalized form;
A set of targeted activities carried out by the state in the field of finance to carry out its functions and tasks;
economic relations related to the formation, distribution and use of centralized and decentralized funds of funds in order to perform the functions and tasks of the state;
one of the economic categories, the development of which is associated with commodity-money relations and the existence of the state;
a system of types and forms, methods of organization, planning and financial management.
46.Term “ fiscal policy” in Western theoretical concepts means:
A comprehensive concept of state fiscal policy and the mechanism for its implementation in economic processes;
a set of relationships on the basis of which monetary funds are formed;
rational use financial resources;
all answers are correct;
there is no right answer.
47.The element of financial management, which means the coherence of all levels of management, is:
financial regulation
financial control
financial planning
Institute of Business and Management
“Features of the formation, distribution and use of profits”
KALUGA-2008
Introduction
Chapter 1. Profit in a market economy
1.1 Economic essence profit and its types
1.2 Formation, distribution and use of profits
1.3 Impact of tax policy on profits
Chapter 2. Analysis of the formation, distribution and use of profits
LLC "Nugget"
2.1 Analysis of the enterprise’s activities according to financial statements
2.2 Technical and economic characteristics of Samorodok LLC
2.3 Analysis of financial results economic activity enterprises
LLC "Nugget"
Chapter 3. Ways to increase profits at LLC Nugget
3.1 Ways to reduce non-production costs and losses
3.2 Improving profit management in a market economy
Conclusion
Bibliography
Applications
Introduction
The relevance of the topic under study lies in the fact that the market economy determines specific requirements for the enterprise management system and a faster response to changes in the economic situation is necessary in order to maintain a stable financial condition and constantly improve production in accordance with changing market conditions.
The enterprise independently plans (on the basis of agreements concluded with consumers and suppliers of material resources) its activities and determines development prospects based on the demand for its products and the need to ensure industrial and social development. One of the independently planned indicators, among others, was profit. In a market economy, the basis economic development is profit. This the most important indicator the efficiency of the enterprise, the source of its life. However, one cannot assume that planning and profit generation remains exclusively in the sphere of interests of the enterprise alone. The state (budget) is also interested in this, commercial banks, investment structures, shareholders and other security holders.
The formation of a mechanism of fierce competition and the instability of the market situation pose the need for an enterprise to effectively use the internal resources at its disposal, on the one hand, and, on the other, to respond in a timely manner to changing external conditions, which include: the financial and credit system, state tax policy, pricing mechanism, market conditions, relationships with suppliers and consumers. Due to the above reasons, the directions of analytical activity are also changing.
To ensure high economic efficiency production, state government is needed economic policy, which would contribute to the formation of an environment favorable for economic activity and orient the enterprise towards maximum profit (income).
Since it is the state that determines the successful functioning of an enterprise, the problems of profit and profitability are currently very relevant.
The main purpose of this research is to develop methods to increase profits.
Optimization of profit distribution, i.e. The financial policy of profit distribution carried out at the enterprise should ensure an increase in turnover, an increase equity, achieving an optimal capital structure.
To achieve the set goal in the work, it is necessary to solve the following tasks:
Study the essence of profit and its types, the role of profit in the economy,
How profits are generated, distributed and where they are used,
Analyze the activities of the enterprise “Namorodok LLC” according to the financial statements.
In a market economy, making a profit is the immediate goal of production. Profit creates certain guarantees for the further existence and development of the enterprise. Each enterprise, before starting production, determines what profit and income it can receive. But economic instability, the monopoly position of commodity producers distorts the formation of profit as net income and leads to the desire to obtain income mainly as a result of rising prices. The elimination of inflationary filling of profits is facilitated by the financial recovery of the economy, the development of market pricing mechanisms, and an optimal tax system. These tasks must be performed by the state during the implementation economic reforms.
Object course work profit acts as financial results economic activity of the enterprise.
The subject of the course work is economic relations regarding the formation and distribution of profits in an enterprise.
In the process of work, the works of I.A. Blanka, A.D. Sheremet, V.M. Rodionov, financial and financial statements LLC "Nugget" enterprise.
Chapter 1. Profit in a market economy
1.1 Economic essence of profit and its types
The basis of the market mechanism are economic indicators necessary for planning and objective assessment of the production and economic activities of an enterprise, the formation and use of special funds, and the comparison of costs and results at individual stages of the reproduction process. In conditions of transition to market economy main role in the system economic indicators profit plays.
Making a profit plays a big role in stimulating the development of production. But due to certain circumstances or omissions in work (failure to fulfill contractual obligations, ignorance regulatory documents regulating the financial activities of an enterprise), the enterprise may incur losses.
Profit is a general indicator, the presence of which indicates the efficiency of production and a prosperous financial condition.
Financial condition of an enterprise is a characteristic of its competitiveness (i.e. solvency, creditworthiness), use of financial resources and capital, fulfillment of obligations to the state and other organizations. Profit growth creates financial basis to carry out expanded reproduction of the enterprise and meet the social and material needs of the founders and employees.
The basis for the formation of profit is a single model adopted for all enterprises, regardless of their form of ownership (Fig. 1.1.).
Profit, which takes into account all the results of the production and economic activities of an enterprise, is called balance sheet profit.
Balance sheet profit includes:
profit from sales of products (works, services),
profit from other sales,
income from non-operating operations, reduced by the amount of expenses on these operations.
In addition, profit is distinguished:
Taxable
Tax free.
After generating profit, the enterprise pays taxes, and
the remaining part of the profit at the disposal of the enterprise is called
net profit.
Net profit- this is the difference between book profit and tax payments due to it.
The enterprise can dispose of this profit at its own discretion: for production development, social development, employee incentives and stock dividends.
Rest retained earnings, remaining at the disposal of the enterprise, is used to increase the company’s equity capital and can be redistributed to:
reserve fund- fund for unforeseen losses, damages,
savings fund- formation of funds for production
Development,
consumption fund- funds for bonuses to employees, provision of
social fund development- for various festive events.
Profit is the final financial result that characterizes
production and economic activities of the entire enterprise, that is, it forms the basis of the economic development of the enterprise.
Due to it, part of the obligations to the budget, banks and other enterprises is fulfilled. Thus, profit becomes the most important for assessing production and financial activities enterprises. It characterizes the estimates of his business activity and financial well-being.
Due to deductions from profits to the budget, the bulk of the financial resources of the state, regional and local authorities authorities, and their increase largely determines the pace of economic development of the country, individual regions, the increase in social wealth and, ultimately, the increase in the living standards of the population 2 .
Profit is the difference between the amount of income and losses received from different business transactions. That is why it characterizes the final financial result of enterprises.
The main indicator of profit used to evaluate production and economic activities is:
Balance sheet profit
Profit from sales of manufactured products,
Taxable income,
Profit remaining at the disposal of the enterprise or net profit.
Since enterprises receive the bulk of their profits from sales
manufactured products, then the amount of profit is under the interaction of numerous factors: changes in volume, assortment, quality, structure of production and products sold, cost of individual products, price levels, efficiency of use of production resources.
In addition, it is influenced by: compliance with contractual obligations, the state of settlements between suppliers and buyers, etc.
From the profits, deductions are made to the budget and interest is paid on bank loans.
1. Choose the correct term for the definition: “a system of relations regarding the formation, distribution and use of funds of funds”:
+ finance
2. The defining features of finance are:
These are monetary relations caused by the fact of the existence of the state's financial system
3. Financial relations are:
Centralized only
Centralized and decentralized nature
Uncertain character
Act as money or in monetary form
Express relationships regarding the production, distribution and use of GDP
Act as a link between the creation and use of GDP and ND
5. Finance is:
Political relations
Real relationships
6. Finance is:
System of economic relations regarding the use of funds
Specific economic relations regarding the formation of a fund of funds from contributions and their use for compensation of damage
Economic relations related to the formation, distribution and use of funds of funds in order to perform the functions and tasks of the state and ensure conditions for expanded reproduction
7. Finance is a system monetary relations related to the formation, distribution and use (continue definition):
+ cash funds
Material funds
State funds
8. Finance functions do NOT include:
Control
+ cost replacement
Distribution
9. Initially, the term “finance” meant:
Enterprise finance
Household finances
+ public finance
10. The defining features of finance (with which representatives of all Russian financial schools agree) are:
These are monetary relations that are of a stock nature.
These are monetary relations, one of the parties to which is necessarily the state.
These are relationships associated with the formation of funds of funds
This is a monetary relationship regarding the use of various funds
11. Financial relations are:
Monetary relations related to payment for goods and services
Economic relations related to the formation of monetary funds
Economic relations related to the formation, distribution and use of funds of funds
12. The socio-economic essence of finance is manifested:
In budget revenues
Directions for spending money
At the expense of which groups of economic entities are funds (centralized and decentralized) formed and in whose favor are they distributed?
13. Select the correct statement:
Any monetary relationship is financial
Economic relations can be either monetary or financial
Any financial relationship is monetary
14. The state’s obligation to redistribute funds to solve national problems is implemented through the finance function:
Distribution
Regulatory
Test
Stimulating
15. Prerequisites for the emergence of finance are NOT:
Stratification of society into classes
The emergence of the state
The emergence of slaves and slave owners
16. The following is redistributed through the budget:
Revenues of the Government of the Russian Federation
+ national income
Grants and subsidies
Cost price
Scholarship
Investments
The state budget
Fund wages
Revenue
19. From the below brief definitions The category of finance is more accurately characterized by the following:
This banknotes, bills
These are cash funds
These are monetary resources
20. The most important feature of finance is:
Fund form of use of funds
Compulsory nature of financial relations
Belonging of finance to a specific business entity and the state.
21. Highlight the correct statement:
Finance is only centralized
+ finance is always a monetary relationship
Finances can be monetary or non-monetary in nature
22. Highlight the incorrect statement:
Finance is associated with the formation of funds of funds
Finance can be decentralized
+ finance has a commodity nature
23. The St. Petersburg school of financial science means by financial relations:
+ relations in which the state is always one of the parties
- relations between enterprises
Relations between enterprises and the population
24. The term “public finance” in economic sense implies:
A system of monetary relations, in the process of which state and municipal monetary funds are formed based on the distribution and redistribution of national income
– a system of relations in society associated with the formation and use of monetary funds
- a system of monetary relations that mediates unequal money turnover, arising at the stage of redistribution of the created social product and associated with the presence of the state as a governing body
– a system of monetary relations associated with the formation, distribution and use of centralized and decentralized funds of funds used to perform the functions and tasks assigned to the state, as well as to ensure conditions for expanded reproduction
25. Select from the proposed categories: 1) depreciation; 2) revenue from sales of products, works and services; 3) contributions of founders; 4) profit from the sale of products, works and services; 5) reserve funds; 6) gross domestic product; 7) national wealth; 8) proceeds from the sale of retired fixed assets, those that relate to the types of financial resources:
+ 1, 4, 5
26. Select from the proposed categories: 1) depreciation; 2) revenue from sales of products, works and services; 3) contributions of founders; 4) profit from the sale of products, works and services; 5) reserve funds; 6) gross domestic product; 7) national wealth; 8) proceeds from the sale of retired fixed assets, those that relate to sources of financial resources:
+ 2, 6, 7, 8
27. Financial relations cover:
+ processes of distribution and redistribution of GDP
Only the GDP distribution process
Only the process of redistribution of GDP
Processes of distribution and redistribution of GDP in the material sphere
Processes of formation and distribution of GDP
28. Highlight the incorrect statement:
The distribution function of finance allows the formation of funds of funds at the level of economic entities
The distribution function of finance allows you to create reserves at the level of an economic entity, state, population
The distribution function of finance is carried out in accordance with the legal norms existing in the state
The distribution function of finance allows us to assess the effectiveness of the processes of distribution and redistribution of national income
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