Term
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Definition
| Is a formal part of the ongoing planning process and periodically results in a set of reports called budgets. |
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Term
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Definition
| A report that gives a financial description of one part of a company's planned activities for the budget period. |
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Definition
| Under this principle, the entrepreneur focuses on improving the activities that show significant differences (or exceptions) between budgeted and actual results. |
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Term
| Retail Company's Operating Cycle |
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Definition
| The average time it takes the company to use cash to buy goods for sale (called inventory), to sell these goods to customers, and to collect cash from its customers. |
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| Service Company's Operarting Cycle |
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Definition
| The average time it takes the company to use cash to acquire supplies and services, to sell the services to customers, and to collect cash from its customers. |
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Term
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Definition
| A set of interrelated reports (or budgets) showing the relationships among a company's (1) goals to be met, (2) activities to be performed in its operating cycle, (3) resources to be used, and (4) expected financial results. |
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Definition
| Shows the number of units of inventory that the company expects to sell each month, the related montly sales revenue, and in which months the company expects to collect cash from these sales. |
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Definition
| Shows the purchases (in units) required in each month to make the expected sales (from the sales budget) in that month and to keep inventory at desired levels. |
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Definition
| Shows the expenses and related cash payments associated with planned selling activites. |
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| General and Administrative Expenses Budget |
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Definition
| Shows the expenses and related cash payments associated with expected activites other than selling. |
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Definition
| Shows the company's expected cash receipts and payments, and how they affect the company's cash balance. |
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Term
| Operating Activities Section |
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Definition
| (of the cash budget) Summarizes the cash receipts and payments the company expects as a result of its planned operations. |
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| Investing Activities Section |
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Definition
| (of the cash budget) Shows the cash payments and receipts the company expects from planned investing activities. |
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| Financing Activities Section |
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Definition
| (of the cash budget) Shows the cash receipts and payments the company expects from planned financing activites. |
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| Projected Income Statement |
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Definition
| Summarizes a company's expected revenues and expenses for the budget period, assuming the company follows its plans. |
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Definition
| Summarizes a company's expected financial position at the end of a budget period, assuming the company follows its plans. |
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Term
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Definition
| Comparison between budgeted and actual expenses for a quarter. |
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