SOCSCI 2AC3 Lecture Notes - Lecture 6: Income Statement, Accounts Receivable, Accounts Payable

66 views11 pages

Document Summary

Agenda: budgeting (profit planning: purposes and overview of budgeting, building a master budget. A budget is a detailed plan for acquiring and using financial and other resources over a specified period. Key for planning & control: planning: developing objectives and preparing various detailed budgets to achieve those objectives, control: the steps taken by management to attain the objectives set down at the planning stage. Two of the most important components advantages of budgeting define goal, think about future, means of allocating resources, communicating plans, coordinate activities. Choosing the budget period: operating budget divided into quarterly or monthly budgets, smaller time periods can keep track better to know when u need to make changes (effective) Schedule of expected cash disbursements (for direct materials only). Not always getting money right after we sell stuff. Additional data: all sales are on account, the company collects 70% of these credit sales in the month of the sale;

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers