ACBU 2223 Study Guide - Final Guide: Retained Earnings, Indian Railways, Net Income

• School: Fordham University
• Department: Accounting
• Course: ACBU 2223
• Professor: Harry Newman

Document Summary

Topics covered: ch 8, 9, 10 (appendix a) , 11 (appendix a), 12. Budgeting is a detailed plan for acquiring and using financial and other resources over a specific period. The master budget is a formal summary of the company"s plans. Production needs + desired ending bal - beginning bal = purchase needs. Cash budget: only concerned with movements of cash. Production budget: budgeted unit sales+ fgend -fgbegin = desire production units. Budgeted income statement: remember to include depreciation now. Cash amount should be taken from the month"s ending cash bal from cash budget. Retained earnings = net income (from budgeted income statement) + previous retained earnings. Flexible budget is used in performance evaluation, which is part of control - budget is based on number of units actually sold in the period. Calculated at the end of the accounting period. What revenues and costs should have been given what was actually sold.