CHAPTER 15: Budgeting & Controlling Operations & Taxes Flashcards
Control
the process of ensuring that organizational goals are being achieved
Performance Standards
set -in advance-acceptable levels to which employee achievement should conform
Budget
a detailed statement of financial results expected for a given future period
Capital Budget
plans expenditures for obtaining, expanding, & replacing physical facilities
Operating Budget
forecasts sales & allocates expenses for achieving them
Cash Flow Budget
forecasts the amount of cash receipts and cash needed to pay expenses and make other purchases
Budgetary Control
the system of budgets used to control a company’s financial activities.
Financial Audit
a formalized examination and/or review of a company’s financial records
Feedback
The response a receiver gives through further communication with the sender of the message or some other person.
Ratios
relationships between two or more variables
Current Ratio
The amount of current assets divided by the amount of current liabilities
Return on Equity (ROE)
the percentage of net profit your equity earns, before taxes
Acid Test (Quick) Ratio
the ratio of current assets, less inventory, to current liabilities
Working Capital
the amount of current assets less current liabilities
Indirect Taxes
not paid by a person or firm, but by someone else
Direct Taxes
taxes paid directly to a taxing authority by the person or business against which they are levied
Excise Tax
an Additional tax on certain items imposed by the federal government
Use Tax
a tax on the use, consumption, or storage of goods within a taxing jurisdiction
Sales Tax
tax added to the gross amount of the sale for goods sold within the taxing jurisdiction
Taxable Income
total revenues minus deductible expenses
Federal Unemployment Tax
the Tax paid to the federal government to administer the unemployment insurance program
Credit Management
involves setting and administering credit policies and practices
Debit Card
usually plastic and enables the owner to withdraw money or to have the cost of purchases charged directly to the holder’s bank account
Peer-to-Peer(P2P)
payment systems that are growing in popularity. There are many choices for using the services including Visa & Mastercard
