FIN 004

A formal written promise to pay a supplier or lender a specified sum of money at a definite future time

it modifies accrual basis profit or loss for the effects of changes in operating assets and liabilities.

he is the one who responsible in making investment, financial, and dividend policy making decion of business

Continous budget is a 12 month budget that rolls forward one month as the current month is accomplished

which is the following is not included to the role of fin manager

this what business used in comprehensive budget that consolidates the overall plan

it is an official statement that shows the result of the operations for a certain periof of time

this type of ratio analysis will use to know if the business can meet its long term obligation

is a comprehensive budget that consolidates the overall plan of the organization for a specific period.

this type of ratio analysis, shows the ability of the company meet its short term obligation

a gourp of key managemnt person accountable for overall

the higher the return, the higher the risk

fixed budget equipped for one level of activity within a certain period.

A statement of profit or loss is an itemized statement that provides information regarding the status of the assets

the following are the advs. of stockholders weath maximization of financial manager except.

defines how a cost works or changes as the amount of cost driver changes

formula of current ratio

the income statement and statement of owners equity provide information covering a periof of time

it measures the ability of the business to recover long term investment from money

in finance, this is the main goal or objevtive of FINMAN

refers to the ability of the company to pay its debts.

the separation between manager and the firm

it shows the state of the business on a specific date

formula on return on total assets - net income+[interest expense x (1-tax rate)] /average total assets

the primary objective of the firms finance manager

called as a common size analysis, is the process of comparing figures in the FS of a single period.

also known as the statement of financial position.

called as a nature of expenses method

FS is used by internal ans external stakeholders to evaluate business performance and value

Is a detailed proposal for the future that is usually expressed in formal quantitative terms

a static budget is a budget with numbers based on planned outputs and inputs for each of the firms division.

is a document that compares a particular financial statement with prior period statements

also known as trend analysis, involves comparing figures shown in the financial statements of two/more succ. periods

it implicates the assessment of a company's past performance, present condition.

Reports beginning capital, plus net income, less withdrawals to compute the ending capital

horizontal,vertical, and ratio analysis are three techniques analysts use when analyzing financial statements.

this type of FS contains revenue, income,costs, and expenses

types of fs that shows financial condition of the business

The amount by which the business assets exceed the business liabilities

has both fixed and variable components.

Financial statements are prepared by taking the figures directly from the work sheet

basic accounting equation

Reports assets, liabilities, and owners equity on a specific date

the excess of total revenues over total expenses for the period

it shows each main class of gross cash receipts and gross cash payments

a budget organized for different levels of act. within a certain period.

Budget committee is a group of key management person accountable for over-all policy

Involves the growth of mathematical relationship between accounts in the FS.

the balance sheet report assets, liabilities, and owners equity on a specific date

budget mannual this pronounces how a budget is prepared and comprises a planning calendar