managing-budgets

For example if the owner purchased that building for

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Unformatted text preview: suffered since then. We will turn your CV into an opportunity of a lifetime Do you like cars? Would you like to be a part of a successful brand? We will appreciate and reward both your enthusiasm and talent. Send us your CV. You will be surprised where it can take you. Send us your CV on www.employerforlife.com Download free ebooks at bookboon.com 27 Balance Sheet Managing Budgets Where each line item on the budget is in comparison to what you budgeted for it. For example, if you want to know how much you’ve spent on employee training at this point in the year and whether or not you have enough left in the account to send an employee to a conference, you’d need to look at the ledger account for training, or at a year-to-date view of the budget. Download free ebooks at bookboon.com 28 The Income Statement Managing Budgets 5. The Income Statement 5.1 Introduction During the fiscal year, any organization will have changes in its finances. The changes could be positive or they could be negative. But the senior management of an organization will want to know the answers to questions like: How well are we doing financially? Are we earning a profit? Are we running at a loss? How is our profit in comparison to the competition? Are we likely to continue earning profit? The budget might give you a clue to some of these questions, because if you see that the amount spent on every line item is so high that you’re about to exhaust your funds, that’s a bad sign. But to answer these and similar questions, you can get better information from an Income Statement. 5.2 Elements of the Income Statement Whereas the Balance Sheet offers a snapshot of an organization’s finances at one given point in time, the Income Statement looks at incoming revenue and outgoing expenses over a period of time. For the Income Statement we use the following definitions: Revenue – incoming assets in return for sold goods or services (cash or accounts receivable, for example). Expenses – outgo...
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This note was uploaded on 06/07/2013 for the course BA 201 taught by Professor Cuongvu during the Fall '13 term at RMIT Vietnam.

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