ACCG106 Lecture Notes - Lecture 9: Cash Flow, Income Statement, Budget

• School: Macquarie University
• Department: ACCG - Accounting and Financial Management
• Course: ACCG106
• Professor: All

Document Summary

Strategic planning long-term planning (3-5yrs: usually carried out by senior management, commonly relates to broader issues such as business takeovers, expansion plans, deletion of business segments, etc. Budget (cid:395)ua(cid:374)titati(cid:448)e e(cid:454)p(cid:396)essio(cid:374) of a(cid:374) aspe(cid:272)t of a (cid:271)usi(cid:374)ess(cid:859)s pla(cid:374)s. Identifying periods of expected cash shortages or excess cash holdings. Throughout the process, communication with managers who are affected by the budget should occur. It highlights the need for relevant people to work together to develop the profit plan for the coming year. The interaction of the various personnel enables to better understand the impact of their decisions and to ascertain whether value will be created. Types of budgets: sales budget, operating budget, production and inventory budget, purchase budget, manufacturing overhead budget, budgeted income statement, cash budget, budgeted balance sheet. Cash budget statement of expected future cash receipts and payments, usually prepared on a monthly basis.