CHAPTER 15: Budgeting & Controlling Operations & Taxes

Question 1

Control

Answer 1

the process of ensuring that organizational goals are being achieved

Question 2

Performance Standards

Answer 2

set -in advance-acceptable levels to which employee achievement should conform

Question 3

Budget

Answer 3

a detailed statement of financial results expected for a given future period

Question 4

Capital Budget

Answer 4

plans expenditures for obtaining, expanding, & replacing physical facilities

Question 5

Operating Budget

Answer 5

forecasts sales & allocates expenses for achieving them

Question 6

Cash Flow Budget

Answer 6

forecasts the amount of cash receipts and cash needed to pay expenses and make other purchases

Question 7

Budgetary Control

Answer 7

the system of budgets used to control a company’s financial activities.

Question 8

Financial Audit

Answer 8

a formalized examination and/or review of a company’s financial records

Question 9

Feedback

Answer 9

The response a receiver gives through further communication with the sender of the message or some other person.

Question 10

Ratios

Answer 10

relationships between two or more variables

Question 11

Current Ratio

Answer 11

The amount of current assets divided by the amount of current liabilities

Question 12

Return on Equity (ROE)

Answer 12

the percentage of net profit your equity earns, before taxes

Question 13

Acid Test (Quick) Ratio

Answer 13

the ratio of current assets, less inventory, to current liabilities

Question 14

Working Capital

Answer 14

the amount of current assets less current liabilities

Question 15

Indirect Taxes

Answer 15

not paid by a person or firm, but by someone else

Question 16

Direct Taxes

Answer 16

taxes paid directly to a taxing authority by the person or business against which they are levied

Question 17

Excise Tax

Answer 17

an Additional tax on certain items imposed by the federal government

Question 18

Use Tax

Answer 18

a tax on the use, consumption, or storage of goods within a taxing jurisdiction

Question 19

Sales Tax

Answer 19

tax added to the gross amount of the sale for goods sold within the taxing jurisdiction

Question 20

Taxable Income

Answer 20

total revenues minus deductible expenses

Question 21

Federal Unemployment Tax

Answer 21

the Tax paid to the federal government to administer the unemployment insurance program

Question 22

Credit Management

Answer 22

involves setting and administering credit policies and practices

Question 23

Debit Card

Answer 23

usually plastic and enables the owner to withdraw money or to have the cost of purchases charged directly to the holder’s bank account

Question 24

Peer-to-Peer(P2P)

Answer 24

payment systems that are growing in popularity. There are many choices for using the services including Visa & Mastercard

Question 25

Square Point of Sale

Answer 25

A system through which you can accept charge sales from start-up with an attachment to you android, to customer POS

Question 26

1. Net Profit to Owner’s Equity

Answer 26

Net Profit b4 Taxes/Owner’s Equity

Question 27

2. Net Profit to Net Sales

Answer 27

Net Profit B4 Taxes/Net Sales

Question 28

5. Current Ratio

Answer 28

Current assets/Current Liabilities

Question 29

6. Acid Test (Quick Ratio)

Answer 29

Current assets - Inventory/Current Liabilities

Question 30

13. Debt to Owner’s Equity

Answer 30

Total Liabilities/Owner’s Equity