managing-budgets

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Unformatted text preview: nerate that revenue Download free ebooks at bookboon.com 8 Introduction Managing Budgets 1.2 Overview of the Ebook As we look at what’s important in budgeting, we’ll also look at some information that will help you get a full picture of the organization’s finances. In this ebook, we’ll look at: The budget as a policy statement – what the budget is telling you about an organization Financial information related to the budget – the budget is a document that is created ‘in the past’ – at least for most of the time that you look at it. There are other important financial documents that, when compared to the budget, will help you understand how the organization is doing financially How to read and understand a budget – we’ll examine the information that the budget gives you as well as the questions that the information might set up in your mind How to approach budgeting for your projects – what you need to consider, what some of the constraints might be, and how you can make sure that you have the resources you need to complete your objectives 1.3 Basic Finance Terms Budgets and discussions about finance use a certain “lingo.” In order to help you understand what is explained in the rest of the ebook, you should have some basic terms under your belt. Figure 1 lists some of the most commonly used terms in corporate finance. Assets Items owned by the business (see Capital Assets, Current Assets and Fixed Assets) Capital Assets available to be invested with the intention of creating new assets. Capital Assets Tangible property that is not easily converted into cash. Capital assets are usually held long-term and include things like buildings, equipment, and other owned items. Download free ebooks at bookboon.com 9 Introduction Managing Budgets Current Assets The company’s total of cash, accounts receivable, and other assets that could be converted into cash within a year. This is the money usually used for day-to-day operations. Debt Financing Creating capital by incurring debt such as by selling bonds or notes. Equity 1) The tot...
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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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