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21 Cards in this Set

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The essential first step in budgeting occurs in the ____________________ phase of budgeting.
Goal-setting
Budgeting that recognizes earnings and expenditures when the money is earned and the expenses incurred, regardless of when the money is actually received or paid, is known as
Accrual basis budgeting.
The phase of budgeting that is focused on setting up the structure and mechanics of the budget is the
Organization Phase
Projected dollar amounts in a budget that one plans and expects to receive or spend during the budgeting time period are called
Budget Estimates
The amount remaining after all budget classification deficits are subtracted from those with surplus is
Net Surplus
A useful tool to help balance out the variations in income and expenditures
Revolving Savings Fund
Income received after taxes and all other employer withholdings.
Disposable Income
What college savings methods requires that the earnings of the funds be taxed at the parent's marginal tax rate when the earnings exceed $1600 per year?
Custodial account
Most important in adding accuracy to long-term goals?
Adjusting for inflation
The phase of budgeting that focuses on the financial aspects of budgeting and on where funds will come from and where they should go is the
Decision-Making Phase
Money left over after funding the necessities of living is called
Discretionary income.
Because most people have higher levels of potential expenditures than their level of income they will need to do what as an integral part of the decision-making phase of budgeting?
Reconcile Budget Estimates
Two key tasks in the implementation phase of budgeting are the creation of
A cash flow calendar and a revolving savings fund.
A sheet of paper, form, booklet, or computer file for maintaining income and expenditure records is referred to as a
Ledger
Recognizes earnings and expenditures when money is actually received or paid out.
Cash Basis Budgeting
The recording of actual income and expenditures occurs in the ... phase of budgeting.
Implementation
A useful control mechanism in budgeting is
The justification of budget exceptions.
Annual estimated income and expenses are recorded for budget time periods in order to identify surplus or deficit situations
A cash-flow calendar
Money left over after paying for the necessities of living is called
Discretionary income.
Because what you plan to spend is generally more that what you expect to earn, an important step in the decision-making phase of budgeting is
Reconciling budget estimates.
The way to understand why some expenditures were higher or lower than expected is to engage in
Variance analysis.