final Flashcards
(43 cards)
What is Christian Stewardship
concerns and responsibility to live wholly for God
Define Stewardship
the careful and responsible management of something entrusted to one’s care
how does stewardship benefits the church
brings money in and helps to prioritize the lives of our congregations
what are parts of a balance sheet
assets
liabilities
fund balance
what are the financial reporting basic concepts
assets= liabilities + fund balance
what is fiduciary responsibility
duty to spend money for the best interest of your company
what are cash flow
how and when money comes into the church and is spent
what are cash flow management
projecting income and expenses with the goal of paying bills on time
what are negative cash flow
where the expense line is more than income
what are positive cash flow
when the income line is more than expense
what are the cash flow terms
cash flow
Cash flow management
negative cash flow
positive cash flow
what is the management observation line report
shared with the corps council and advisory board
3 key elements of separation of duties
person who approve purchases should not prepare checks for payment
individual who approves the checks should not prepare checks for payment
person who authorized checks should not be the person who approves purchases
what reports do you have to do monthly
balance sheet
budgeted financial statement
bank reconciliation
aged analysis report
accounts receivable detail aging
bank reconciliation
summary of banking and business activity
budgeting purposes
plan for allocating the resources of the corporation
proforma budget
a budget prepared in advance of possible changes to your company that would affect your business operating structure
what are the 2 goals of internal control
- protect the assets of the company
2. makes accounting data more reliable
6 principles of internal control
- establish responsibility
- separate duties
- document everything
- Physical, mechanical, and electronic controls
- independent internal verification
- human resource controls
what are the 3 points of the fraud triangle
opportunity - workplace environment must provide opportunities
financial pressure - personal financial problems caused by too much debt
Rationalization - to justify their fraud
what scriptures relate to the qualifications for church leaders
1 timothy 3
titus 1
name the 5 primary Shelby modules
accounts payable
accounts receivable
bank reconciliation
balance sheet
income and expense report
what are the 2 most important reports
balance sheet
income and expense report
3 main factors that contribute to fraud
lack of separation of duties
trust- churches need to trust employees with money
change- new personal could have a lack of training and knowing of procedures
