ACCT1022 Chapter Notes - Chapter 9: Income Statement, Cash Flow, Financial Statement
15 Mar 2017
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Chapter nine: financial planning and analysis the master budget. Financial planning and analysis (fp&a) systems: system that helps managers assess the company"s future and know if they are reaching their performance goals, planning, measuring and recording results, evaluating performance. Sales of services or goods: budget is based on the forecasts of what goods/services will be sold that period. Sales forecasting: critical step in the budget and difficult to do accurately, starting point is generally the level of sales in the prior year. Operational budgets: specifies how its operations will be carried out to meet the demand for its goods or services, operational budgets differ because they are adapted to the operations of individual companies in various industries. Financing budgets: project their cash flow and identify likely cash shortfalls and surpluses, cash receipts budget provides information about the cash flows into the company based on sales of its services or products.
