[FPPS 183] Module 1 & 2

- profession in which a knowledge of the mathematical and natural resources gained is applied with judgement to develop ways
- Latin: Ingenium

Physical environment <- Production or Construction -> Economic Environment

- concerned with economic aspect of engineering

1. Problem Recognition, definition, and eval (PRDE)
2. Development of feasible alternatives
3. Development of Cash Flows for each alternative
4. Selection of Decision Criterion
5. Analysis and comparison of the alt
6. Selection of preferred alternative
7. Performance Monitoring & Post-eval of results

process of recording all transactions of a company which affect investments of a capital

-record the history of the transactions of the company

- Balance Sheet
- Profit and Loss Statement

- Most important financial statement
- fin summary showing the reln among assests, liabs, ownership

Assets = Liabs + Owner's Equity

anything that has economic value

expected to be converted to cash, sold, or used up within one year

will not be converted to cash or into saleable form

represent the money paid for mats not yet delivered or not yet rendered to the company

no physical substance, come in the form of rights, privileges, and competitive advances

debts or claim of the third party upon the assets of the company

obligations which are due within a short period of time usually a year

- not due for payment until sometime in the future
- after a period exceeding one year

liabs representing income which have already been paid to the enterprise for goods not yet delivered or services not yet rendered

made up of the investment of a person or several persons in the enterprise as well as any retained earnings that are reinvested in the business

simplest form of business organization

association of two or more persons (hanggang 9) for the purpose of engaging in a business for profit

distinct legal entity separate from the individuals who own it

ownership of stockholders who have the priority in receipts of dividends

ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled

cumulative net income of the firm since its beginning

- aka income statement
- summary of the income and expenses of an individual for a given period

mathematical relationships between two or more items in the financial statements that indicate the success or failure of the management

extent to which a firm can meet its short term obligation

a firm can meet its short-term obligations without relying upon the sales of inventories

- debt-to-total assets ratio
- debt-to-equity ratio

ratio of total funds that are provided by creditors

ratio of total funds provided by creditors versus by owners