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Budgeting and Forecasting
Budgeting and forecasting are business processes essential to a company’s operations. Budgeting involves planning for revenues and expenses. Forecasting is a method of predicting trends based on historical and current events.
1,416 Questions
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Net income plus operating expenses is equal to?
Net income plus operating expenses equals gross profit, or total revenue. To calculate net income, accountants subtract total expenses from total revenues.
Do increase in investments decrease cash flow or decrease cash flow?
Increasing investments decreases cash flow because money must be spent on said investments.
What are the six items you would expect to find in a capital budget for hospitality business?
Air conditioners, furnaces, furniture, computers, televisions, water heaters, fully equipped kitchen, building, parking lot
First: Fixed costs remain fixed in this sence that it does not concern whether you r doing production or not or how much you are doing production. For example factory building rent... you are paying the rent of the building even if you are making goods or not.
Second: Fixed costs remain fixed for a certain range of production units and after that if you want to increase from that production capacity range this fixed cost also change. For example if you acquire a factory buiding for godown and it has a capacity to story 100 product units so uptill the range of 100 units your fixed cost remain same but when you need to store more units you need to acquire more space and definitely need to pay more rent so now your fixed cost is change but still upto certain range after that range you may need more space and need to pay more rent.
So fixed cost remain fixed upto certain level of activity and after that it changes and become fixed again upto next capacity level of activity.
What are the examples of information system that cannot solve business problems?
One business problem that information systems cannot solve is making a judgment call. Information systems cannot make decisions and they cannot make compromises.
Is a balance sheet supposed to balance?
it is always balance because it depicts the basic accounting equation it means all transactions recorded correctly if balance sheet don't balance it means some transactions missing or there are some errors.
What step in the budget process does the House of Representatives control?
The House of Representatives turns the president's budget into spending bills.
Distinguish between budget and a financial plan?
budget is how much money you are willing to spend and finanicial planm is how much you may be being lended by a bank.
for thus reasons we are in a resession
Is depreciation an asset liability or equity?
no
Depreciation Expense is an expense on your Statement of Comprehensive Income (Profit and Loss Account)
The depreciation expense in the year would then reduce the value of the asset to which the depreciation relates.
If you have any further questions on this topic, please do not hesitate to contact me at info@hodgsons.co.uk
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With Regards to the Accounting Equation.
Equity (NAV)= Assets- Liabilities
Depreciation would be considered negative equity (as are all expenses) as they represent a decrease in the net asset value- or NAV- (not through transaction with the entities owner)
How much does an accounting controller make?
The salary for an accounting controller varies greatly depending on the state you work in and the company you work for. The median salary for an accounting controller is 176,000 dollars per year.
What are some common methods for the internal control of cash?
An allowance.
Here are some additional controls
For Cash receipts
> Keeping Cash handling and Book Keeping separate
> Daily deposit of cash receipts
For Cash disbursements
> Making all disbursements by cheque (other than petty cash)
> Keeping the Cheque book under lock and key.
> Sign checks only if adequate documentation is presented
> Have only higher-level personnel sign checks (neverthe bookkeeper!)
> Prepare bank reconciliations.
> Keep petty cash in a safe place.
> Execute Fidelity bonds on employees in positions of trust, such as book-keepers. (Fidelity bonds are insurance policy taken against the risk of dishonesty by employees.)
What impact does WACC have on capital budgeting and structure?
What impact does WACC have on capital budgeting and structure?
What is an example of an amortized expense?
The costs of long-lived intangible assets, such as patents, are allocated across time periods and reclassified as amortization expense.
Preparing budget accurately according to the company policy and procedure?
An original budget is the initial base amount allocated to an account. In general, the source of this entry for state, institutional, self-supporting and Medical Service Plan (MSP) accounts is the annual Budget Planning Statement (BPS). For personal services categories, this amount should be equal to or greater than the sum of all annual salaries paid from the account.
PERMANENT (RECURRING) BUDGET CHANGESA permanent budget change or transfer is recurring in nature. This type of budget adjustment impacts an account's budget base not only for the current fiscal year but also for succeeding fiscal years. Permanent budget changes are generally processed to adjust personal services lines on an annual basis.
TEMPORARY (NONRECURRING) BUDGET CHANGESA temporary budget change or transfer is nonrecurring in nature. This type of budget adjustment impacts an account's budget base only for the current fiscal year. Temporary changes are generally processed to revise object categories or to adjust account balances during the current year.
REVISED BUDGETAn account's revised budget field is the sum of the original budget plus or minus any changes (both permanent and temporary) for each object category. The revised budget represents the budgeted amount of recurring and nonrecurring funds available for the current fiscal year.
BUDGET BALANCE AVAILABLEAn account's Budget Balance Available (BBA) for each object category is equal to the revised budget minus actual fiscal year-to-date expenditures, minus fiscal year-to-date obligations and commitments. The account total budget balance available represents the amount of the budget remaining as free and unencumbered.
What is the difference between Cash and cash equivalents and Cash provided by operating activities?
Difference between cash and cash equivalent is that cash equivalent is not cash like other cash but it is so liquid that it can be converted to cash immediately when required like marketable securities while cash provided from operating activities means cash generated by selling goods to customers.
What is the Equation for cost of goods sold?
The most basic equation for cost of goods sold is as follows:
COGS = PS * CPP
where
PS = products sold
CPP = cost per product to produce
(assuming cost per product to produce does not change with time)
For example, if it costs me $10 to make a widget and I sold 25, the COGS is $250.
Many companies dealing in widgets; however, carry inventories of those widgets. The following equation incorporates inventory:
COGS = (BI - EI + PP) * CPP
where
EI = ending inventory
BI = beginning inventory
PP = products produced
CPP = cost per product to produce
(assuming cost per product to produce does not change with time)
For example, if we started the year with 50 widgets, ended the year with 40 widgets, produced 90 widgets and it still costs $10 to make a widget, the COGS is as follows:
COGS = (50 - 40 + 90) * $10 = we sold 100 widgets * $10 = $1,000
Where to put payment of investment in subsidiary in the cash flow statement?
these payments will be shown in cash flow from investing activities.
Top 10 audit firms in the Philippines?
Valdes, Abad & Associates
Sycip, Gorres Velayo & Co,.
Isla,Lipana & Co.
Punongbayan & Araullo and Co.
What are importance of audit planning?
Through audit planning, the Company can foresee the future market potential and plan its strategy accordingly right now so that they can capture market share of its product at a faster pace.
What are the advantages and disadvantages of using ratios in business?
An advantage of using ratio in business are that...
- You can made comparisons with other figures easily.
An disadvantage of using ratio in business are that...
- It doesn't always give a clear view of how well your company is doing, as it only gives you a figure.
How does Amy's Ice Cream differ from a publicly held corporatio?
Amy's Ice Creams Inc. is a privately held corporation, meaning the shares are held by private individuals. In 1984 Amy raised the funds to open her first shop by writing a business plan and raising funds through investors. Today, most of those original investors are still there. A publicly traded company is a company that shares are traded on an exchange and are freely accessible to be bought and sold by the public. publically traded companies are heavily regulated by the SEC and have heavy reporting requirements.
