A budget is a formal written statement of management’s plans for a specified future time period, expressed in financial terms. It normally represents the primary method of communicating agreed-upon objectives throughout the organization. Once adopted, a budget becomes an important basis for evaluating performance. It promotes efficiency and serves as a deterrent to waste and inefficiency.
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- Accrual-basis accounting
Accrual-basis accounting refers to an accounting basis in which companies record transactions that change a company’s financial statements in the periods in which the events occur.
- Convertible and callable bonds
Bonds that can be converted into common stock at the bondholder’s option are convertible bonds. The conversion feature generally is attractive to bond buyers.
- Current liability
A current liability is a debt that a company can reasonably expect to pay (1) from existing current assets or through the creation of other current liabilities...
- Debt to total assets ratio
Debt to total assets ratio is a solvency measure that indicates the percentage of total assets provided by creditors: computed as total debt divided by total assets.
- Schedule of cash payments
The schedule of cash payments shows the distribution of cash to the partners in partnership liquidation.
- Payment date
On the payment date the company mails dividend checks to the stockholders and records the payment to the dividend.
- Special journal
Special journal refers to a journal that records similar types of transactions, such as all credit sales.