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41 Cards in this Set
- Front
- Back
Concerned with the reporting of transactions |
Financial accounting |
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Examples of financial accounting |
income statements and balance sheets |
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Uses historical and estimated data to assist in the management of daily operations and future planning |
managerial accounting |
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example of managerial accounting |
budget |
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Statement of assets, liabilities, or debts and capital stock at a given time or the end of the accounting period |
balance sheet |
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current assets |
cash and things that can be converted quickly into cash |
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examples of current assets |
inventory, accounts receivable |
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Fixed assets |
items not usually easily sold |
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example of fixed assets |
land, buildings, equipment |
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current liabilities |
must be paid within 1 year |
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fixed liabilities |
long term |
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financial report that presents the net income or profit of an organization for the accounting period |
income statement |
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income statement is also sometimes called what? |
profit and loss statement |
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a written financial statement in numerical terms for a specified period of time |
budget |
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a process of planning, coordinating, and controlling financial resources in order to meet the objectives and goals of the organization |
budgeting system |
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an activity or group of activities for which costs are specified |
cost centers |
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uses of the budget |
planning and controlling
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when a budget is properly administered it comes a tool of: |
control and accountability |
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controllable costs |
overtime salaries supplies / equipment other purchases |
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short term budget structure |
supplies, expenses for personnel |
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long term budget structures |
capital equipment or improvement |
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periodic moving budget |
jan - march predicts what to do july - sept |
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Budget that takes into account revenue, expense, director labor budget, direct material budget, overhead budget, and other expense |
operating budget |
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projects income from the sale of products/services based on volume and price. also looks at other income |
revenue budget |
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anticipates costs and can be divided into sub budgets such as labor, material, overhead, and miscellaneous expenses |
expense budget |
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predicts labor costs but does not include benefits |
direct labor |
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projects the cost of raw materials (food, cleaning supplies, dishes, utensils, flatter, glassware, disposables, small equipment) |
direct material budget |
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cost of facilities rent/mortgage utilities reports maintenance |
overhead budget |
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two basic types of operating budgets |
incremental budgeting and zero based budgeting |
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the financial database of the past is increased by a certain percentage |
incremental budgeting |
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uses past experience head forecasting, presumes stable conditions |
fixed budget |
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is adjusted for actual activity, is used where operating costs (etc) tend to fluctuate a lot (seasonal fluctuations) |
variable budget |
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Starts from scratch each time in the budgeting process and evaluates all activities before funds are allocated, developed by peter phyrr |
zero based budgeting |
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who developed zbb |
peter phyrr |
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objectives that yield the greatest benefit for the least cost |
cost benefit |
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document that identifies a specific activity so it can be ranked against other activities |
decision package |
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identifies alternative means for performing the same function and identifies the best alternative to choose |
mutually exclusive package |
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zbb funding is projected for how many years? |
3 |
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statement of the assets and liabilities of an organization based on budget estimates |
budgeted balance sheet |
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summarizes the comparison in dollars and cents of the income with all the expenses in a given period, usually done monthly |
profit and loss statement |
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cost of goods sold = |
beg inv + monthly purchases - end inv |