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What is the process that periodically checks actual revenues and expenses against forecast values?
Financial Controlling
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What is the process that periodically checks actual revenues and expenses against forecast ed values?
Financial Controlling
What is the matching concept in financial accounting?
The Matching Concept: A significant relationship exists between revenue and expenses. Expenses are incurred for the for the purpose of producing revenue. In measuring net income for a period, revenue should be offset by all the expenses incurred in producing that revenue. This concept of offsetting expenses against revenue on the basis of "causes and effect" is called the Matching Concept. The term 'matching' means appropriate association of related revenues and expenses. In matching expenses against revenue the question when the payment was made or received is 'irrelevant'. For example if a salesman is paid commission in January, 2001, for sale made by him in December, 2000. According to this concept commission expense should be offset against sales of December 2000 because this expense is incurred for producing revenue in December 2000. On account of this concept, adjustments are made for all outstanding expenses, accrued revenues, prepaid expenses and unearned revenues, etc, while preparing the final accounts at the end of the accounting period.
How do you monitor and control actual expenses and revenue against projected expenses and revenue?
how to monitor and control expenses against budget/
What thing Is a planning and controlling tool that reflects the firms expected sales revenues operating expenses and cash receipts and outlays.?
A budget is a planning and controlling tool that reflects a firm's expected sales revenues, operating expenses, and cash receipts and outlays. It serves as a financial roadmap, helping management allocate resources effectively and monitor performance against financial goals. By comparing actual results to budgeted figures, organizations can identify variances and make informed decisions to ensure financial stability.
The Budget as a planning and control mechanism?
The budget serves as a crucial planning and control mechanism by providing a financial framework for an organization’s goals and objectives. It allows management to allocate resources effectively, forecast revenues and expenses, and set performance benchmarks. By comparing actual financial performance against the budget, organizations can identify variances, assess operational efficiency, and make informed decisions to adjust strategies. Ultimately, a well-structured budget enhances accountability and supports strategic alignment within the organization.
What is the process that periodically checks actual revenues and expenses against forecast ed values?
Financial Controlling
What is the difference between accured expenses and provision?
Accrued expenses are those expenses which are incurred but no amount is paid yet. Provisions are created to be adjusted against actual expenses occurs during the fiscal year and advance liability is created in balance sheet.
What are the functions of budget?
In summary, the purpose of budgeting is to: 1. Provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out. 2. Enable the actual financial operation of the business to be measured against the forecast.
What are function of budget?
In summary, the purpose of budgeting is to: 1. Provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out. 2. Enable the actual financial operation of the business to be measured against the forecast.
What is the matching concept in financial accounting?
The Matching Concept: A significant relationship exists between revenue and expenses. Expenses are incurred for the for the purpose of producing revenue. In measuring net income for a period, revenue should be offset by all the expenses incurred in producing that revenue. This concept of offsetting expenses against revenue on the basis of "causes and effect" is called the Matching Concept. The term 'matching' means appropriate association of related revenues and expenses. In matching expenses against revenue the question when the payment was made or received is 'irrelevant'. For example if a salesman is paid commission in January, 2001, for sale made by him in December, 2000. According to this concept commission expense should be offset against sales of December 2000 because this expense is incurred for producing revenue in December 2000. On account of this concept, adjustments are made for all outstanding expenses, accrued revenues, prepaid expenses and unearned revenues, etc, while preparing the final accounts at the end of the accounting period.
How do you monitor and control actual expenses and revenue against projected expenses and revenue?
how to monitor and control expenses against budget/
Is money capitalize?
An accounting method used to delay the recognition of expenses by recording the expense as long-term assets. In general, capitalizing expenses is beneficial as companies acquiring new assets with a long-term lifespan can spread out the cost over a specified period of time. Companies take expenses that they incur today and deduct them over the long term without an immediate negative affect against revenues.
What thing Is a planning and controlling tool that reflects the firms expected sales revenues operating expenses and cash receipts and outlays.?
A budget is a planning and controlling tool that reflects a firm's expected sales revenues, operating expenses, and cash receipts and outlays. It serves as a financial roadmap, helping management allocate resources effectively and monitor performance against financial goals. By comparing actual results to budgeted figures, organizations can identify variances and make informed decisions to ensure financial stability.
Are the cost of goods sold a balance sheet account?
Cost of goods sold is of expense nature and that's why not shown in balance sheet rather it is shown in income statement to match expenses against revenues.
The Budget as a planning and control mechanism?
The budget serves as a crucial planning and control mechanism by providing a financial framework for an organization’s goals and objectives. It allows management to allocate resources effectively, forecast revenues and expenses, and set performance benchmarks. By comparing actual financial performance against the budget, organizations can identify variances, assess operational efficiency, and make informed decisions to adjust strategies. Ultimately, a well-structured budget enhances accountability and supports strategic alignment within the organization.
Is recording a plant asset for the amount paid an application of the matching expenses with revenue concept?
Yes, recording a plant asset for the amount paid reflects the matching principle by aligning the asset's cost with the revenue it generates over time. By capitalizing the cost of the plant asset, businesses can allocate its expense through depreciation, matching those expenses against the revenues produced during its useful life. This ensures that financial statements accurately reflect the relationship between costs and revenues, providing a clearer picture of profitability.
What is fluctuation inventory?
Inventory that is carried as a cushion to protect against forecast error.
