Accounting
This type of tax is levied on a company's profits and is calculated based on its taxable income.
What is corporate income tax?
This key performance indicator measures a company's profitability by comparing its net income to its revenue.
What is profit margin?
This accounting method, favored by McDonald's for tracking revenue and expenses, recognizes income when it is earned and expenses when they are incurred, regardless of when cash is exchanged.
What is accrual?
This framework provides guidelines for auditors to follow when conducting audits of financial statements.
What are the GAAS? (Generally Accepted Auditing Standards).
Besteuerung
What is taxation?
This component of the balance sheet represents the residual interest in the assets of a company after deducting its liabilities.
What is equity?
This strategy involves identifying and eliminating unnecessary costs and inefficiencies to improve a company's profitability.
What is cost reduction?
This accounting principle, followed by McDonald's, requires revenue to be recorded when it is earned, regardless of when cash is received.
What is the revenue recognition principle?
This process involves evaluating and selecting long-term investment projects that will yield the highest return for the company.
What is capital budeting?
Abschreibungsmethoden
What are depreciation methods?
This accounting system records each financial transaction with at least two equal and offsetting entries.
What is double-entry bookkeeping?
This process assesses the effectiveness and efficiency of a company's operations and strategies, often using key performance indicators (KPIs) and benchmarking.
What is performance evaluation?
This financial calculation, used by McDonald's to determine the level of sales needed to cover its fixed and variable costs, helps assess profitability and risk.
What is break-even analysis?
This technique examines the relationship between sales volume, costs, and profits to determine break-even points and optimal pricing strategies.
What is cost-volume-profit (CVP) analysis?
Inventarbewertung
What is inventory valuation?
This financial ratio measures a company's ability to cover its short-term liabilities with its current assets.
What is the current ratio?
This process involves evaluating and selecting long-term investment projects or capital expenditures that will generate future cash flows for a company.
What is capital budgeting?
This method is used to calculate depreciation.
What is the straight-line depreciation method?
This preliminary step in auditing involves evaluating potential threats and vulnerabilities to an organization's financial statements and operations to determine the audit approach.
What is risk assessment?
Prüfverfahren
What are audit procedures?
This fundamental accounting principle states that a business should only record transactions that can be reliably measured in monetary terms.
What is the monetary unit principle?
This technique compares actual performance to budgeted targets to identify differences and understand the reasons behind them.
What is variance analysis?
McDonald's uses these measurements as indications of growth and financial success.
What are cash flow measurements?
Auditors employ this method to select a representative subset of transactions or items for examination during tests of controls and substantive testing.
What are sampling techniques?
Umsatzerfassungsprinzip
What is revenue recognition principle?