Join Earl Kay Stice for an in-depth discussion in this video Budgets, part of Accounting Foundations.
Budgeting is another important topic…in managerial accounting.…Remember managerial accounting,…detailed stuff that we use every day inside a business,…not the kind of thing that we're going…to reveal to people outside.…It's the kind of stuff that we're going to be using inside.…Budgeting, making a systematic plan on paper so we…can see problems before they arise in the real world.…So we got a simple example here of a cash budget.…We've got a company, we'll call it Derrald Company.…It's the end of the September and they've budgeted…the following cash receipts and cash payments…for the next four months.…
So at the end of September they've got $54,000…cash in the bank and they're just looking forward…to seeing what's going to happen in the next few months.…And we see in October, their cash receipts are going…to be $10,000, they're going to have to pay $50,000.…November, again they collect $10,000,…they got to pay $60,000, so October and November…are going to be some lean months.…They're going to be paying out a lot more…
- What is accounting?
- Working with balance sheets and income statements
- Determining the costs of products
- Performing break-even analysis
- Determining average and marginal tax rates
- Understanding tax deductions and credits
Skill Level Appropriate for all
Financial Literacy: Reading Financial Reportswith Rudolph Rosenberg1h 25m Appropriate for all
Making Investment Decisionswith Rudolph Rosenberg56m 25s Appropriate for all
1. Basics of Accounting
2. Financial Accounting
3. Managerial Accounting
4. Income Taxes
Next steps3m 9s
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