Fc Flashcards
Refers to the overall health and stability of the company at a specific point of time
It provides a snapshot of assets, liabilities and equity, reflecting the entities ability to meet its financial obligation.
Financial position
It is amount invested in the business by its owner.
Capital
Summary of record in terms of increase and decrease is an entities checking account.
Normally issued by the bank to the depositor on a monthly basis .
Bank statement
The standard medium of exchange and business transaction. It refers to the currency and coin which are in circulation and legal tender.
Money
A special journal which is used for recording all cash receipt and all cash payment.
Cash book
Financial planning tool that outlines the projected inflows and outflows of cash over a specific period, usually automatically basis.
It helps organization manage their cash flows effectively by estimating when cash will be received and when payment will be made.
To ensure that business has enough cash on hand to meet its financial obligation and operate smoothly.
Cash budget
Referred to company wide budget
Master budget
The process of estimating or predicting how a business will perform in the future.
It helps identity future cost and revenue trends that may influence strategic goals, policies or services in the near or long-term
Financial forecasting
Is the primary goal of a business organization.
Generating profit
Penalty charge for non-compliance of the condition for a health to maturity type deposit
Pre-termination fee
Controller can ensure that new development within the company have a manageable impact on the larger financial picture.
This is the reason collaboration between departments is necessary.
Change control
Is the minimum balance that an account holder should maintain in his or her bank account
Compensating balance
Is a method of authorizing and controlling cash disbursement.
Prevents indiscriminate and an authorized purchases and incurrence of expenses
Voucher system
Could be defined as formal statement of a plan presented in quantitative terms.
It serves as a barometer against which the result of the daily operations of a company are matched, coordinate, evaluated and controlled
Budget
Formal managerial process that is organized by responsibility, time and information to assure that strategic planning, projected planning and operational planning are carried out regularly to enable the top management to direct and control the future of the company
Corporate planning
This entails detailed plan involving acquisition of new property, plat equipment, creation of new products, modifications, acquisition or adoption of new system and acquisition of new entities
Capital expenditures
Is a current asset less current liabilities. Also called the net current asset.
Working capital
Control measure for both cash receipt and cash disbursement.
Under this internal measure control cash receipts are deposited intact daily to the bank.
All payments for expenses should be made by check for small amount or petty expenditures
Imprest system
Financial controllers play a crucial role in an organization, overseeing financial activities and making strategic decisions to ensure the financial health of the company.
Long-range financial plan
This is already a one whole year budget made but there a new budget on a monthly or quarterly basis
Rolling budget
The sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer.
Cost of labor
Essential process for business to understand their revenue performance.
Sales analysis
It refers to a period of time starting from the purchase of inventory to a collection of payment from the sale of inventory
Operating cycle
It refers to the efficient and effective use of current assets and current liabilities.
Working capital management
