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Rd budgets > Financial management > Flashcards

Financial management Flashcards

1
Q

Accounting

A

Identification recording and communication a financial information

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2
Q

Auditing

A

Independent reviews of accounting and financial records

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3
Q

Generally excepted accounting principles GAAP

A

Provide consistency and prep and communication of financial statements

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4
Q

Cash Accounting

A

Recognizes monetary transaction at time cash is received

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5
Q

Accrual accounting

A

Method that recognizes revenues when earned or expenses incurred regardless of cash received

Accrual is most common

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6
Q

Depreciation

A

Part of accrual accounting. Decrease in value of an asset overtime typically annually equipment company car building

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7
Q

Budgets

A

Plans for operating a business to control expenses and profit against sales

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8
Q

Expense

A

Cost required to purchase some thing (materials) cost to operate a business (electricity)

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9
Q

Revenue/sales

A

Total money generated by sales of goods or services

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10
Q

Net income or net profit

A

Financial gain after all expenses have been paid. bottom line of a financial statement

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11
Q

Operating budget

A

Guide for day-to-day operations includes revenue and expense budget

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12
Q

To develop an operating budget first develop sales or revenue portion of the budget

A

A. Consider changed in pricing food prices board rates at universities

B. Consider competition economy industry trends

C. Consider profit objective and projected profit

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13
Q

Second part of planning operating budget

A

Budget expenditures estimates for food labor equipment repair and special projects.

Budget for labor account increases in salaries and wages, payroll taxes.

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14
Q

When should capital budget be completed?

A

At the same time as operational budgets

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15
Q

What is included in the capital budget?

A

Building improvements, new equipment,replacement of equipment, service maintenance, contracts expansions, repairs facilities

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16
Q

Payback Period

A

Time it takes an organization recover money invested

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17
Q

Cash budget

A

Estimate of the amount of money that will flow in and out of a business helps to determine if funds will be available to meet financial obligations

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18
Q

Incremental budget Or traditional budget

A

Begins with existing budget give slight increase is no change or slight decrease as the various line items departments or programs

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19
Q

Performance budget model

A

Less revenue and expenses by line item for each program or service and as a performance measure typically in government not-for-profit organization

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20
Q

Zero based budget model

A

Every function within an organization is organized for evaluation and starts at zero needs and cost for each function or reviewed with detail Time intensive

21
Q

Flexible budget model

A

Adjust the various levels of operation or sales good for operations with Darian sales or revenues throughout the year

22
Q

Fixed budget model

A

Prepared for one level of sales or revenues if you anticipated changes throughout the year common in government and nonprofit

23
Q

Operating expenses

A

Labor supplies administrative and other general expenses

24
Q

Fixed costs

A

Cost that remain constant regardless of increases in sales or customer volume

Examples include salaried personnel rent taxes depreciation insurance

25
Q

Variable costs

A

Cost that change in direct proportion to sales volume this includes food paper products cleaning supplies hairnets facemasks

26
Q

Semi variable cost

A

Portion remains fixed and a portion changes with sales volume this includes overtime utilities or maintenance or labor

27
Q

Direct costs

A

Cost associated with a direct production of a good or service includes food and beverage direct labor costs

28
Q

Indirect costs

A

Cost not associated with direct production of a good or service

Examples include utilities rent Marketing office supplies employee benefits gifts and Depreciation

29
Q

Recurring revenue

A

Based on the idea of predictability business has reasonable assurance they will receive payment regular times example monthly subscription for Netflix

30
Q

Project revenue

A

Generated through one time projects example catering operation may only work with client one time

31
Q

Service revenue

A

Sells time not good example private practice dietitian corporate wellness dietetics consultant

32
Q

Profitability

A

Primary goal of business

Measured using revenues versus expenses and other possibility ratios

Financial accountability I need for a company to make a profit

33
Q

Resources allocation

A

Process and strategy of an operation deciding where resources like people equipment and food Should be used in the production of goods and services

Should be efficient to reach desired goals

34
Q

Balance sheet in financial statements

A

List assets or resources liabilities or debts and owners equity or owners interest is a snapshot of a given date and time

35
Q

Balance balance sheet

A

For the balance sheet to be balanced each increase or decrease in assets must be accompanied by an equal decrease in another asset or increase in liability or owners equity

36
Q

Current assets (short term)

A

Cash and all assets that will be converted into cash in a short period of time

37
Q

Fixed assets (long term)

A

Long-term permanent assets that are not intended for sale

38
Q

Accounts receivable

A

Money owed to the company from outside entities

39
Q

Debt to asset ratio

A

Financial leverage indicator if you have a 50% ratio this means 50% of each dollar has some form of debt shows ability to pay financial responsibilities

40
Q

Current liabilities

A

Obligations that must be paid within a period of one year

41
Q

Fixed liabilities or long-term liabilities

A

Obligations that will not be paid within the current year

42
Q

Owners equity

A

Retained earnings

Monetary value of the company wants debts are paid off held by owners

43
Q

Income statement or Profit and loss statement

A

A report of operating results over a period of time. Focuses on revenues or money made from sales and expenses including wages rent and utilities.

44
Q

Net profit

A

Sales minus expenses

45
Q

Gross profit

A

Sales minus the cost of goods sold

46
Q

Profit margin

A

How many sense of profit the business generates for each dollar sales

47
Q

Return on assets

A

Indicate sense of profit for every dollar in assets

48
Q

Break even point

A

We’re company is not making profit or incurring any loss

Rd budgets (1 decks)

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