Midterms Flashcards
an organization that handles financial transactions for individuals, groups, and other organizations – profit, non-profit, private, or government- owned.
financial institution
what are the most common examples of financial institutions?
banks and insurance companies
a document which signifies a legal or binding agreement between two parties.
financial instrument
Financial instruments typically have __________ associated with them.
monetary values
common examples of financial instruments
checks and stock certificates
a means for the buying and selling of stocks, bonds, and other financial instruments.
financial market
common example of financial market
Philippine Stock Exchange.
a statement of projected sales, expenses, income, and other financial transactions for the coming period.
budger
a firm’s financial plan.
budget
a statement of projected sales, expenses, income, and other financial transactions for the coming period.
budget
what are a budget’s two major purpose:
- a tool for planning
- a tool for control.
Types of Budget
Operating Budget
Financial Budget
a detailed projection of all income and expenses for a given period of time, which is usually on year. period.
Operation Budget
What are the sub-budgets in the operation budgets?
- Sales budget
- Production budget
- Direct materials budget
- Direct labor budget
- Factory overhead budget
- Selling and administrative expense budget
- Income statement
shows the impact of the planned operations and capital investments on a firm’s assets, liabilities, and owner’s equity.
Financial Budget
