Term
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Definition
- the managemtn of cash transactions
- includes the receiving, storing, counting, rocording, withdrawing, and depositing of cash
- systems designed with redundant checks and balances |
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Term
| cash handling: checks and balances |
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Definition
- cashier verifies bank amount at beginning of the shift
- cashier counts amount in drawer at end of shift |
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Term
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Definition
- part of checks and balances in cash handling
- the amount of money that the cash register drawer contains at the start of s shift |
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Term
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Definition
- part of checks and balances in cash handling
- the amount of money that is present in the cash register drawer at the end of the day minus the starting bank |
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Term
| cash receipt should be deposited in a commercial bank daily |
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Definition
- part of checks and balances in cash handling
- commercial bank employees also verify cast receipts when they are deposited. |
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Term
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Definition
- part of checks and balances in cash handling
- records and displays the details of a sales transaction
- a storage unit for the cash involved in these transactions |
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Term
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Definition
- part of checks and balances in cash handling
- used to verify sales at the end of the day
- may be recorded electronically in new systems |
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Term
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Definition
- a limited number of authorized, possibly bonded, people should have access to cash
- cash must be secured when not being handled, when counted, and when transported
- safe
- armored transport |
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Term
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Definition
- cash on hand for making emergency purchases or for minor expenditure that cannot be made through regualr venders in a timely manner.
- should be used appropriately, not to avoid following procedures
- is preferable over using money from cash receipts for emergency purchases
- when love, receipts are exchanged for more petty cahs
- some orgs use co credit cards instead. |
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Term
| controlling cost: material management |
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Definition
- negotiating good prices
- specifications
- using a prime vender
- group purchases
- just in time delivery
- keep up to date records of inventory
- use of POS system
- secure receiving, storage, and work areas |
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Term
| controlling costs through workflow, workforce, and workplace |
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Definition
workflow
- smooth forward workflow
- economies of scale
- quality control
workforce
- measuring and improving productiviy
- monitoring work hours and avoiding overtime
- scheduling employees for appropriate tasks
workplace
- facilities maintenance |
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Term
| controlling costs: utilities management |
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Definition
- gas equiptment is generally cheaper than electric
- idle equiptment not in use
- insulation for thermal equipment, window
- automatic lights
- water-conserving fixtures/equipment
- recycle, reduce, reuse, repurpose |
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Term
| controlling costs: risk management |
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Definition
minimizing the liability of an organization such as
- work related illness
- job induced injury or stress
- products in which performance fails to meet set standards |
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Term
| financial reports: operating statment |
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Definition
- statement prepared by the accounting department
- at the end of an accounting period that compares actual fiscal performance to the budget
- aka a performance report
- should be generated promptly so that results can be used to make adjustments
- ex increase restaurant revenues+more customers, more staff needed to maintain level of service |
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Term
| financial reports: variance analysis |
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Definition
- accounts for any deviation from the budget
- managers should identify variaces in the operating statement, and investigate the causes
- some managers must submit formal cariance analyses routinely
- managers are responsible for identifying the causes and stopping it if necessary |
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Term
Financial Reports:
Profit and loss statements (P&L) |
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Definition
• Document generated by the organization’s accounting department
• Lists all the actual data accumulated for the accounting period
• Controllable & uncontrollable revenues
• Controllable & uncontrollable expenses
• Net profits or losses |
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Term
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Definition
inventory
- manner chosen to value inventory affects P&L
- higher inventory value+expenses appear higher
- lower inventory value+ profit appears higher
indirect labor costs
- may not appear in budget, but included in P&L
overhead
- may not appear in operating budget, but included in P&L
depreciation
- accounting technique that spreads the expense of capital equipment or building over their life spans
- value decreases gradually with time
- calculated by dividing the purchase price of an item by its expected lifetime
taxes
- income taxes, not sales taxes
- taxes in employee wages are reported as indirect labor costs |
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Term
| financial reports: balance sheet |
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Definition
- a financial report summarizing an organization's: assets, libilities, owner's equity
- provides a snapshot of the organization's financial status at a specific point in time
- the balance sheet must be in balance; assets must be equal to liabilies |
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Term
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Definition
assets
- items of value owned by the business or business owner
- ex checking/savings accounts, real estate, inventories, equipment
- cash and all assers that are readily available and can be converted to cash within a short period of time (usually one year)
- cahs on hand, money in checking/savings accounts
- inventory
- accounts receivable: money that is owned to a business for products that have been delivered and invoiced
- prepaid expenses: expenses that are paid for |
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Term
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Definition
- Fixed assets: nonliquid, tangible goods that have been capitalized and are being depreciated over time. ex land, buildings, equipment, and any improvements like new carpeting, paint jobs, and the installation of security systems
- liquid assets: items, like inventory, that can easily be converted to cash (opposite of fixed assets
- other assets: bonds, securities, surplus real estate, funds invested in ongoing production development. |
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Term
| balance sheets: liabilities |
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Definition
- debts or other financial obligations of a business
- ex: payroll, rent, invoices owed for goods and services recently purchased, loan or interest payments |
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Term
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Definition
1. current liabilities: short term debt that is due to be paid in the near future
- accounts payable: money that is owned by a business to a creditor for the purchase of products, rent, mortgage payments, and other outstanding loans
- payroll liability: any salaries and wages that are owned to employees on the day that the balance sheet is prepared.
- accrued liability: expenses for which payment will be more in a future period, such as paid time off and income taxes
- unearned revenue: liability incurred from the advanced payments for products that have not yet been delivered. |
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Term
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Definition
- a kind of liability
- any debt that becomes payable after a year
- ex: mortgages, long term leases, and warranties on goods sold |
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Term
| other liabilities (besides current and long term) |
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Definition
| post-retirement benefits for ex- employees, potential liability from pending lawsuits |
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Term
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Definition
- ownership
- an owner's net investment in a business after providing for full payment of all creditors |
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Term
| the dif between assets and liabilities |
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Definition
- when assets > liabilities, equity is high
- when assets=liabilities, equity is low |
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Term
| owner's equity vs stockholder's equity |
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Definition
- owner's equity: the term used to describe the ownership equity of a business with only one owner
- stockholders' equity: the term used to describe the ownership equity of a corporation for which there is more than one owner. |
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