This method of Formal Forecasting deals with human judgment based on feelings, impressions, and sales force judgment
What is Qualitative
100
Two other types of budgets besides operating budgets are
What is cash & capital
100
An important distinction to remember: ___________ is the result of operation’s revenue & incurring expenses, while _________ is the result of the receipt and disbursement of cash
What is income & cash flow
100
Two forms of internal control and which one is the best practice
What is preventive & detective. Preventative is best
100
Name what is
-Used to evaluate combinations of projects according to net present value
-Results when limited funds are available
-Funds are used for the most profitable capital projects in the period
What is capital rationing
200
These Four types of patterns must be considered when choosing the most appropriate forecasting method
What is trend, seasonal, cyclical, random
200
Establish financial objectives, forecast revenues, estimate expenses, determine bottom line, board accepts budget, process complete are the major elements in the
What is budget preparation proccess
200
Time between the subtraction of cash from an operation's books and the actual subtraction of cash from the company's bank account is called
What is payment float
200
2 or more people working to defraud a company
What is Collusion
200
o Obligations for MIT:
• Maintenance
• Insurance
• Taxes (property)
What is Executory Cost
300
This form of forecasting technique provide managers with rational foundations for planning in a attempt to estimate levels of future activities
What is Explicit forecasting
300
Determine variances, identify significant variances, analyze significant variances, identify problems, take appropriate action refer to ways of __________ the budget
What is controlling
300
This type of business is most likely to use an integrated cash management system and centralizes cash receipts and disbursements
What is multi-unit operation
300
Insurance policy for employees in a position of trust
What is bonding
300
___________ leasing is long term, contains purchase options, lessee pays executory costs
While__________ leasing is short term, not shown in balance sheets, no executory costs
What is Capital and Operating
400
Naive, moving averages, exponential smoothing, and single regression analysis are methods of
What is quantitative approaches to forecasting
400
___________ is determined using the budget report to compare actual results to the budget
What is variance determination
400
The difference between payment float and collection float is________
and three cash categories include....
What is Net Float
What is petty cash, cash in hand, cash in bank
400
Process of placing future years’ income on an equal basis with current year expenditures to compare differences
What is Time Value of Money
400
____________owner of property, and exchanges use of property to lessee in exchange for rent
What is Lessor
500
Method of effectiveness, cost incurred, frequency, turnaround, size and complexity all determine
What is Method of Selection
500
Static budgets are fixed and only require one level of activity to be planned and approved, However this type of budget allows for revenue & variable expenses to change while fixed expenses are contant
What is Fixed Budgets
500
A system used to speed the flow of cash from accounts receivable to the hospitality operation's bank accounts consisting of a post office box
What is lockbox system
500
By using capital budgeting models, management actively works to maximize the operation's profits. Four approaches include....
What is accounting rate of return, payback, net present value, and internal rate of return
500
Leasing Terms: ____________ is the cost of item if purchased rather than leased