Equity 1 the total of a companys assets minus its

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Unformatted text preview: al of a company’s assets minus its liabilities 2) Ownership interest in a corporation in the form of stock Expenses Any cost of operating the business Fixed Assets Long-term, tangible assets that are used by the business tnd that the organization does not plan to convert to cash in the current or next fiscal year. Liabilities A financial obligation such as debts, claims, or losses Operating Budget A projection of estimated income and expenses during a specific period. An operating budget is short-term, usually for one year, while a capital budget is long-term. Revenue Income generated as part of the operations of the organization before liabilities are subtracted. Figure 1: Basic Finance Terms Download free ebooks at 10 The Budget as a Policy Statement Managing Budgets 2. The Budget as a Policy Statement 2.1 Introduction A budget may be a guideline regarding your expenses and revenues, but it is more than that. It is actually a policy statement that your organization is issuing. It gives the reader insight into the organization, how it operates, and what is important to that organization. A budget is actually a policy statement that your organization is issuing regarding its values and goals. Please click the advert You’re full of energy and ideas. And that’s just what we are looking for. © UBS 2010. All rights reserved. Think for a moment about your own budget. Where do you spend your money? What does that say about you? For example, do you value education enough to pay for it for your children? Do you value your car enough to keep a car payment? Or do you value security more so you actually invest a great deal in savings? Your personal budget would tell an observer information about you, just as an organization’s budget will tell you a great deal about an organization. In this chapter we’ll examine what the budget tells you about an organization and its policies. Looking for a career where your ideas could really make a difference? UBS’s Graduate Pr...
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