Account Analysis and Budget Comparison (Junior Cert Business Studies): Flashcards
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Practise the cards
12 cards from this deck
Account analysis
Account analysis
Examining actual income & expenditure over a time period
What to examine in account analysis
What to examine in account analysis
Opening/closing balances, income/expenditure sources & position
Budget comparison statement
Budget comparison statement
Document comparing budgeted vs actual figures & differences
Formula for budget difference
Formula for budget difference
Actual amount - Budgeted amount
Positive difference in expenditure means
Positive difference in expenditure means
You overspent in that category
Negative difference in expenditure means
Negative difference in expenditure means
You spent less than budgeted
Positive difference in income means
Positive difference in income means
You earned more than expected
Negative difference in income means
Negative difference in income means
You earned less than planned
Benefits of visual financial presentation
Benefits of visual financial presentation
Makes patterns obvious, shows expenses, easier to understand
Best chart type for spending breakdown
Best chart type for spending breakdown
Pie chart
Best chart for budget vs actual comparison
Best chart for budget vs actual comparison
Bar chart
Purpose of regular financial analysis
Purpose of regular financial analysis
Improves budgeting accuracy & identifies cost reduction areas