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Flashcards in Unit 1 Study Notes Deck (10)
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1

Describe each financial statement balance sheet income statement and statement of cash flow

Balance sheet is one indicator of the organizational financial health it is the statement of the organization financial position it includes assets liabilities and equity as it's equal liabilities plus equity

Income statement unlike the balance she compares revenues expenses and profits over a specified period of time usually one year or a
quarter ...the bottom line how the organization is performing
Revenue minus expenses equals net income. Gross profit margin compare it's gross profit with sales. The gross profit ratio tells you how much of each seals dollar you can expect to use to cover expenses and generate profit. This is the Gross profit divided by net sales equals the percentage.

2

What is the calculation for a return on investment

X

3

What are the three common methods of budgeting

Incremental go to the formula budgeting and zero-based budget in

4

Describe each of the different budgeting ,
incremental budgeting
Formula
Zero-based budget

Incremental means the Bunkie is the basis for funding allocation new funds are requested based on need and objectives which results in incremental adjustments from the prior years total. Formula means a specific cost is apply and calculate it Matt appliance in average cost to comparable expenses and general funding is changed by a specific amount for example university good experience a system why 5% budget decrease or a 5% budget increase. Zero-based me the budget starts at zeroall objective and operations are getting a primary ranking is zero based budget each unit or goal is ranked and then available funds are given in order

5

What is the four phases of the evolution of the organization or the lifecycle of the organization

Introduction, growth, maturity, decline

6

Describe introduction phase of an organization's life cycle that organization design looks sad in terms of how an organization evils sometimes in direct response to their strategic plan

Introduction: high energy creativity experienced death pay more to find talent offer high involvement equity or stock in return for conditions of employment may outsource because of lack of experience talent.




7

Describe the growth phase of the lifecycle of the organization as it evolves

Growth phase is change and expansion. Facilitates marketing and people. A lot of the time there are backlogged and scheduling problems while the organization begins to adjust to the increase in demand.policies and rules begin to be formalized because the increases need to operate effectively.
Recruitment and selection efforts are increased to increase and motivate and sustain morale owhile building a team

8

Describe the maturity face of the lifecycle of an organization

The maturity phase is were scheduled problems are now resolved. StAffing, cultures stabilize. Policy process and rules are formalized and communicated to all employees. Introduces new products, training emphasis in the maturity to maintain flexibility. Rate of change usually levels off.

9

Describe the decline phase of the lifecycle of the organization how the organization eat balls and organizational design in the decline phase.

The decline phase is entrenched in rules and policies. Leadership becomes resistant to change. There may have to be movement toward drastic changes to alter that the decline. I think this phase is characterized by new risk-taking, acquisition and possibly mergers, and diversification

10

What are the three key financial statements in the financial and accounting function

Balance sheet income statement and statement of cash flow