an estimate of the expected revenue and expenses for the future

What is the "people risk" if no budgeting control is not in place?

The company may not have money for pay raises and risk losing talent

The difference from your forecast/budget to what actually happened

Which statement is not true about Proforma?

It is a method of calculating a past financial performance

The process of discovering, interpreting and communicating patterns in data

Which statement is false about budgeting

Is only necessary for large organizations and not for small businesses

Why is inventory management important in the hospitality industry?

To monitor inventory, reduce waste, and improve efficiency

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Introduction to Budgeting

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Questions 24

Answers

1
What is a Budget?
a method for gathering data
shows how much it cost the business
Summarizes all the cash coming in, and going out from a business
an estimate of the expected revenue and expenses for the future
2
There are 3 main sections on an Income Statement except this one
Revenue
Expenses
Net Income
Assets
3
What is the "people risk" if no budgeting control is not in place?
The company may not have money for pay raises and risk losing talent
There will be fighting between co-workers
There will be risk for having complains from customers
There will not be enough budget for paying for maintenance
4
What is Variance?
The difference between the Inventory Management and Labour Management
The difference from your forecast/budget to what actually happened
The difference between the Income Statement and Balance Sheet
A rock n roll band
5
It is a ‘snapshot’ of a business’ financial position?
Income Statement
Proforma Statement
Cash Flow Statement
Balance Sheet
6
What is not a form of collecting data?
Focus Groups
Observing
Online Marketing Analytics
Advertising Signs
7
Variance can be seen as the difference between Proforma Financial Statements and Actual Financial Statements
True
False
8
Finance is?
looks forward
The study of money and assets
all of the above
planning of future financial actions
9
Which statement is not true about Proforma?
It is a forecasting method
It is the best guess into the future
It is a method of calculating a past financial performance
It uses assumptions, data, trends and risk for accuracy
10
Actuals are comparing what we guessed to what actually happened?
True
False
11
What is Analytics?
The use of creative thinking to solve abstract problems
A method of prediction the future with 100% accuracy
The study of how organizations make decisions
The process of discovering, interpreting and communicating patterns in data
12
One of these is not a data collection method
Online Tracking
Observation
Bluetooth Connection
Interview
13
Which financial statement shows a company's financial position at a specific point in time?
Balance Sheet
Cash Flow Statement
Income Statement
Statement of Retained Earnings
14
A budget does not include?
current assets
investments and sources of income
revenue projections
projected expenses
15
Which of the following is not the major steps of the budgeting process?
Gathering Info
Make no change when needed
Creating Forecasts
Setting goals
16
Which statement is false about budgeting
Is only necessary for large organizations and not for small businesses
A balance budget means that revenues are expected to equal expenses
Helps in planning and controlling finances by setting and tracking expenses
Uncovers potential bottlenecks before they occur allowing for proactivity
17
Which aspects of the business need to be controlled?
Risk Management
Inventory Management
All of the them
Labour Management
18
What does IoT stand for?
Internet of things
Intranet of things
Interest of things
Internet of themes
19
Estimating conservatively is best practices for a?
Budget
Expenses
Cash flow
Forecast
20
Another term for forecasting and future financial performance?
Analytics
Setting goals
Proforma
income statement
21
Which of the following looks backwards and reports on previous financial actions?
Accounting
Budgeting
Financing
All of the these
22
What is the third step in the budgeting process?
Creating a forecast
Gather information
Make changes
Review forecast
23
The Income Statement shows how much it cost the business, to earn their revenue over a specific time period?
False
True
24
Why is inventory management important in the hospitality industry?
To monitor inventory, reduce waste, and improve efficiency
To hire more employees
To decrease customer satisfaction
To increase labor costs

Introduction to Budgeting Flashcards | StudBud