On a Shoestring...
This type of budget, which uses last year's budget as a starting point and focuses on how funds are allotted, is the most common form of budgeting used in the public sector.
Line item
These documents help companies understand if they made a profit or a loss over a certain period of time by highlighting all of a business’s incurred expenses and earned revenue.
Income statements
This calculation tells you how much money shareholders would receive for each share of stock they own.
Earnings per share (EPS)
Expectations for this type of budget are unrealistic because they do not incorporate the input of the very people who implement them.
Top-down budget
"Sell me this pen."
The Wolf of Wall Street
This type of budget promotes accountability by focusing on results achieved rather than money spent.
Performance based
A company’s balance sheet contains information about these three things.
Assets, Liabilities, and Shareholders equity
This type of accounting, whereby financial data are grouped together by purpose, is typically used by governments and non-profit organizations.
Fund accounting
Traditional budgets have drawbacks including the fact that they are incremental, they fragment decisions and focus on this.
The past
“Greed, for lack of a better word, is good.”
Wall Street
This budgeting method has been around since the 1960s and requires administrators to justify all expenditures and start from scratch each year.
Zero-based
You want to gain an understanding of all the money coming in and going out of your business. You should review this.
Cash flow analysis
The practice of adjusting the original cost of a debt instrument as principal payments is received and writing off any purchase discount or premium to income over the instrument's life.
Debt amortization
Re-evaluation of all costs, managerial input into the budget process, and executive understanding of each department contributes to the company’s goals are advantages of this budgeting approach
Zero-based budgeting
“ABC, A always, B be, C closing, Always be closing, Always be closing”
Glengarry Glen Ross
This type of budgeting, popular in many school settings, grants authority for programs and staff to the school’s principal and team.
Site-based
Companies typically categorize their assets based on how quickly they can be converted into cash using these two categories.
Current assets and non-current assets
To get a better understanding of a company’s financial statements read this, a narrative explanation provided by the company helps investors gain a better understanding of the company’s financial condition and provide context to better analyze the financial data.
MD&A (Management's decision and analysis of financial condition and results of operation)
The main advantage of this type of budgeting is that those closest to and best understand the needs of the organization are empowered to be part of both the preparation and maintenance of the budget.
Site-based
“Truth is like poetry. And most people #%$& hate poetry.
The Big Short