Join Earl Kay Stice for an in-depth discussion in this video Budgets, part of Accounting Foundations (2014).
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
1. Basics of Accounting
2. Financial Accounting
3. Managerial Accounting
4. Income Taxes
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