Finance and Business

Question 1

Types of Budgets

Answer 1

Operating Budget
Capital Budget

Question 2

Operating Budget

Answer 2

Short term budget (one year) projecting all estimated income and expenses during period. Excludes capital expenditures because they are long term cost.

Question 3

Capital Budget

Answer 3

Shows financial impacts resulting from major long-term, non-routine expenditures for items like property and plant equipment.

Question 4

Chart of Accounts

Answer 4

Numerical (numbering convention) list of all standard items that an accounting system tracks: assets, liabilities, net assets, revenues, expenses.

Question 5

Journals

Answer 5

Books of original entry, organize info by transaction type(receipts, payroll, reimbursements, accts receivable, accts payable). All transactions are made in chronological order in journal BEFORE GENERAL LEDGER.

Question 6

Types of Financial Statements

Answer 6

Income Statement
Statement of Shareholder’s Equity
Balance Sheet
Statement of Cash Flows