Key Concepts (Grade 12 NSC Matric Accounting): Flashcards
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Budgeting's role in business planning
Budgeting's role in business planning
Planning tool for internal control & informed decisions
What a cash budget predicts
What a cash budget predicts
Flow of actual money in and out of business
Purpose of cash budget
Purpose of cash budget
Forecast future cash receipts and payments
What projected income statement forecasts
What projected income statement forecasts
All income & expenses regardless of when cash changes hands
Purpose of projected income statement
Purpose of projected income statement
Forecast future profits or losses
Debtors' collection schedule definition
Debtors' collection schedule definition
Systematic plan for collecting money customers owe
Creditors' payment schedule definition
Creditors' payment schedule definition
Plan for when business pays money it owes to suppliers
When cash sales appear in cash budget
When cash sales appear in cash budget
During the month when the sale occurs
Credit sales timing in income statement
Credit sales timing in income statement
Appear immediately when sale is made
When credit sales affect cash budget
When credit sales affect cash budget
Only when payment is actually received from debtors