Chapter 4 Flashcards
Accrual Accounting
1) An accounting method that enters income and expenses into the books at the time of contract vs when payment received or expenses incurred (cash accounting)
2) A system in which revenue & expenses are accounted for as soon as they are committed.
Ie - Megan has a vendor who does a service in January so it is accrued in January vs when the invoice is paid in March (cash accounting)
Balance Sheet
A balance status at a given time (includes liabilities, assets, etc.)
Cash Accouting
A system in which revenue and expenses are counted as they are actually received.
Cash Flow Statements
In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents and breaks the analysis down to operating, investing and financing activities.
Financial statement that shows cash entered and exited a company during an accounting period.
Financial Management
The efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization.
Fixed Costs (FC)
Expense incurred regardless of the number of attendees.
Hosted Buyer
Offers complimentary travel, accomodation & registration for pre-qualified buyers to attend an exhibit. Typically there will be an expectation on the part of the hosted buyers that they participate in a predetermined number of appointments with the exhibitors.
Income Statement
One of the financial statements of a company and shows the company’s revenue & expenses during a particular period of time. It indicates how the revenues are transformed into the new incomes. It displays the revenues recognized for a specific period and the cost & expenses charged against these revenues, including write-offs and taxes.
Incremental Budgeting
A budget created by using past budget data or actual performance as a foundation and making incremental changes as necessary for the new budget period.
IE - CC/ES budgets
Indirect Costs
Also called overhead or administrative costs, these are expenses not directly related to the event. They can include salaries, rent and building equipment maintenance.
Subvention
An amount of money that is given to a person or group by a government or organization.
Valued Added Tax (VAT)
A tax that is added to a product at each step of the manufacturing & market process reflecting value which has been added to the product by processing.
Variable Costs
Expenses that vary based upon vaious factors such as the number of attendees.
Zero-Based Budgeting
The process of building a budget without benefit of a previous year’s budget.
Break-Even
The point at which revenues are equal to expenses.
Budget
A statement of estimated revenues and expenditures for a specified period of time; divided into subject categories and arranged by principal areas of revenue & expenses.
Budget Philosophy
Financial goal of the event.
Breakeven, profit or lose money.
Budgeting
A process of planning and preparing estimated revenues and expenses in order to achieve financial goals.
Deficit
A shortfall, loss or discrepancy in the financial situation of a meeting.
Expenses
The cost of the products & services utilized to host a meeting.
Forecast
To use past or historical data to estimate information about the future. e.g. future attendance at a meeting or financial data.
Master Account
A record of transactions during an event where the resulting balance is paid directly by the group. May include room, tax, incidentals, food & beverage, audiovisual equipment, decor, etc.
Masterbill
Profit (Net Income)
The amount of money remaining after payment of all expenses.
Revenue
The money generated from the supply of products & services including hosting a meeting over a period of time.
Total Costs (TC)
In regard to a meeting can be described as the total expenses.
Ie - fixed costs, plus the variable costs, needed to produce a meeting.
