Chapter 22- Acct II – Flashcards

Budget system based on expected activities.

Formal statement of future plans, usually expressed in monetary terms.

Accounting report that presents predicted amount of the company's assets, liabilities, and equity balances as of the end of the budget period.

Accounting report that presents predicted amounts of the company's revenues and expenses for the budget period.

Process of planning future business actions and expressing them as formal plans.

Pan that lists dollar amounts to be both received from disposal of plant assets and spent to purchase plant assets.

Plan that shows expected cash inflows and outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans.

Practice of preparing budgets for a selected number of future periods and revising those budgets as each period is completed.

Report showing budgeted costs for direct labor necessary to satisfy estimated production for the period.

Report showing budgeted costs for direct materials necessary to satisfy estimated production for the period.

Report showing budgeted costs for factory overhead necessary to satisfy the estimated production for the period.

Plan that shows predicted operating expenses not included in the selling expenses budget.

Comprehensive budget plan that includes specific plans for expected sale, product units to be produced, merchandise (or materials) to be purchased, and amount of cash to be borrowed or loans to be repaid, as well as a budgeted income statement and balance sheet.

Plan that shows the units or costs of merchandise to be purchased by a merchandising company during the budget period.

Plan that shows the units to be produced each period

New set of budgets a firm adds for the next period (with revisions) to replace the ones that have lapsed.

Quantity of inventory or materials over the minimum needed to satisfy budgeted demand.

Plan showing the units of goods to be sold or services to be provided; the starting point in the budgeting process for most departments.

Plan that lists the types and amounts of selling expenses expected in the budget period.