1. What are the components of a budget? Are they the same for every organization? Why or why not? Should every organization forecast its operating budget? Why or why not?
2. Who are the users of financial statements? How would users differ in their views of the financial statements? Why would they rely on financial statements?
3. Fixed assets are broken down into several different categories, which include, but is not limited to AUTO, FURNITURE & FIXTURES, MACHINERY & EQUIPMENT, LAND, BUILDING, COMPUTER SOFTWARE & HARDWARE. Each one of these categories have a different amount of years allowed for each asset to be depreciated. This allowance falls under GAAP & MACRS.
4. the order of liquidity means that the "most" liquid is first, and then so on.what is the most liquid asset?
5. "rotation" is very important when inter-department. Why??
6. Independent internal verification - please explain what this is?
7. it will check that all departments are adhering to internal SOP's (standard operating procedures). What is an example of a checks and balance for cash control?
8. what is "checks and balances" and why is it important that we use that when implementing internal controls?
9. Inventory, what happens if the inventory is held longer than one year?
11. they are listed in order of liquidity....which means what??
12 why do we need to assure that there is proper documentation for procedures?
13. what do you all think "other controls" are?
14. how are current assets listed on the balance sheet?© BrainMass Inc. brainmass.com June 3, 2020, 9:56 pm ad1c9bdddf
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I am unable to understand question#13.
Budget is defined as a detailed plan of crucial business activities, based on future forecasts and are to be carried on in a budget period for the attainment of certain predetermined business objectives. The major components of a budget include consolidated fund, legal obligations, non-fixed requirement, operational requirements, and contingency funds. No, they are not same for every organization because every organization has different objectives. Budget is mainly depended upon the predetermined goal of the organization; therefore, it is not same for all the organization. Yes, every organization forecast its operating budget to find out the actual expenditure on the predetermined goal.
The users of the financial statements are broadly divided into two heads:
? Internal users: It includes owners, management staff and employees and their representatives.
? External users: It includes the potential investors, banks or financial institutions and various government agencies, trade associations, customers, etc.
The different users use financial statements in different ways in order to fulfill his/her requirement accordingly. Such as owners & management staff uses financial statement to make the important business decisions and to measure the efficiency and earning power of the firm. Employees use financial statements to judge to the company's performance and ability to maintain existing staff and serve them through appropriate remuneration, promotion, salary increment, bonus, etc. Whereas, the externals use the financial statements in order to access its earning capacity, debt paying ...
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