Itb Chap 12

614 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
614
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
20
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Itb Chap 12

    1. 1. Financial Management 12-1 Financial Planning 12-2 Financial Records and Financial Statements 12-3 Payroll Management 12-4 Financial Decision-Making 12
    2. 2. LESSON 12-1 Financial Planning <ul><li>Goals </li></ul><ul><li>Recognize important financial questions that must be answered in a business. </li></ul><ul><li>List the steps in budget preparation. </li></ul><ul><li>Describe three types of business budgets. </li></ul>Chapter 12 Slide
    3. 3. Key Terms <ul><li>revenue </li></ul><ul><li>expenses </li></ul><ul><li>budget </li></ul><ul><li>start-up budget </li></ul><ul><li>operating budget </li></ul><ul><li>cash budget </li></ul>Chapter 12 Slide
    4. 4. FINANCIAL PLANNING <ul><li>Beginning a business </li></ul><ul><li>Ongoing operations </li></ul><ul><li>Business expansion </li></ul>Chapter 12 Slide
    5. 5. BASIC FINANCIAL EQUATION Chapter 12 Slide Revenue – Expenses = Profit or Loss
    6. 6. >> C H E C K P O I N T <ul><li>What is the basic financial equation for businesses? </li></ul>Chapter 12 Slide
    7. 7. DEVELOPING BUSINESS BUDGETS <ul><li>Sources of budget information </li></ul><ul><li>Budget preparation </li></ul>Chapter 12 Slide
    8. 8. >> C H E C K P O I N T <ul><li>What are the four steps in preparing a business budget? </li></ul>Chapter 12 Slide
    9. 9. TYPES OF BUDGETS <ul><li>Start-up budget </li></ul><ul><li>Operating budget </li></ul><ul><li>Cash budget </li></ul>Chapter 12 Slide
    10. 10. >> C H E C K P O I N T <ul><li>Identify and describe the three types of budgets needed by all businesses. </li></ul>Chapter 12 Slide
    11. 11. LESSON 12-2 Financial Records and Financial Statements <ul><li>Goals </li></ul><ul><li>Identify several types of financial records needed by businesses. </li></ul><ul><li>Describe the differences between an income statement and a balance sheet. </li></ul>Chapter 12 Slide
    12. 12. Key Terms <ul><li>financial records </li></ul><ul><li>assets </li></ul><ul><li>liabilities </li></ul><ul><li>owner’s equity </li></ul><ul><li>balance sheet </li></ul><ul><li>income statement </li></ul>Chapter 12 Slide
    13. 13. FINANCIAL RECORDS <ul><li>Types of records </li></ul><ul><ul><li>Asset records </li></ul></ul><ul><ul><li>Depreciation records </li></ul></ul><ul><ul><li>Inventory records </li></ul></ul><ul><ul><li>Records of accounts </li></ul></ul><ul><ul><li>Cash records </li></ul></ul><ul><ul><li>Payroll records </li></ul></ul><ul><ul><li>Tax records </li></ul></ul><ul><li>Maintaining financial records </li></ul>Chapter 12 Slide
    14. 14. >> C H E C K P O I N T <ul><li>How has the process of maintaining financial records been affected by technology? </li></ul>Chapter 12 Slide
    15. 15. FINANCIAL STATEMENTS <ul><li>The balance sheet </li></ul><ul><li>The income statement </li></ul>Chapter 12 Slide
    16. 16. Chapter 12 Slide
    17. 17. Chapter 12 Slide
    18. 18. >> C H E C K P O I N T <ul><li>What is the difference between a balance sheet and an income statement? </li></ul>Chapter 12 Slide
    19. 19. LESSON 12-3 Payroll Management <ul><li>Goals </li></ul><ul><li>Describe the components of a business’ payroll system. </li></ul><ul><li>Identify information included in payroll records and paychecks. </li></ul>Chapter 12 Slide
    20. 20. Key Terms <ul><li>payroll </li></ul><ul><li>payroll record </li></ul><ul><li>direct deposit </li></ul>Chapter 12 Slide
    21. 21. PAYROLL SYSTEMS <ul><li>Income taxes </li></ul><ul><li>Social Security and Medicare </li></ul><ul><li>Unemployment taxes </li></ul>Chapter 12 Slide
    22. 22. >> C H E C K P O I N T <ul><li>What is the purpose of the payroll system? </li></ul>Chapter 12 Slide
    23. 23. PREPARING A PAYROLL <ul><li>Payroll records </li></ul><ul><li>Preparing paychecks </li></ul>Chapter 12 Slide
    24. 24. AN EMPLOYEE’S PAYCHECK AND EARNINGS REPORT Chapter 12 Slide Sample Paycheck Sample Earnings Report
    25. 25. >> C H E C K P O I N T <ul><li>What is the difference between a payroll record and an earnings report? </li></ul>Chapter 12 Slide
    26. 26. LESSON 12-4 Financial Decision-Making <ul><li>Goals </li></ul><ul><li>Recognize important financial information managers use to make decisions. </li></ul><ul><li>Identify the steps in making financial decisions in business. </li></ul>Chapter 12 Slide
    27. 27. Key Terms <ul><li>financial performance ratios </li></ul><ul><li>discrepancies </li></ul>Chapter 12 Slide
    28. 28. USING FINANCIAL INFORMATION <ul><li>Important financial information </li></ul><ul><li>Understanding financial performance ratios </li></ul><ul><ul><li>Current ratio </li></ul></ul><ul><ul><li>Debt to equity ratio </li></ul></ul><ul><ul><li>Return on equity ratio </li></ul></ul><ul><ul><li>Net income ratio </li></ul></ul>Chapter 12 Slide
    29. 29. FINANCIAL PERFORMANCE RATIOS Chapter 12 Slide
    30. 30. >> C H E C K P O I N T <ul><li>Identify four important financial performance ratios used by managers to determine how well the business is performing. </li></ul>Chapter 12 Slide
    31. 31. MAKING FINANCIAL DECISIONS <ul><li>Prepare a budget </li></ul><ul><li>Look for discrepancies between actual and budgeted performance </li></ul><ul><li>Make needed adjustments </li></ul>Chapter 12 Slide
    32. 32. >> C H E C K P O I N T <ul><li>List the three steps in financial decision-making. </li></ul>Chapter 12 Slide

    ×