1. Cash Basis Accounting: records revenues ẃhen cash is received and expenses ẃhen cash is paid
2. Accrual Basis Accounting: reporting income ẃhen it is earned and expenses ẃhen they are incurred, does not
matter ẃhen cash is exchanged
3. Modified Accrual Accounting: recognized 1) revenues ẃhen the resulting current financial resources are both
measurable and available to be used and 2) expenditures ẃhen they are incurred
4. GAAP Principles: Recognition, measurement, presentation, disclosure
5. Operating Budget: budget for day-to-day expenses covering the span of a year
6. Capital Budget: budget for major capital, or investment, expenditures covering up to 5-10 years, also subject to
depreciation on accounting records
7. Budget Cycle: Planning, preparation, approval, execution (or expenditure), analysis, audit
8. Incremental Budget: Increases the previous year's budget by a percentage
9. Zero-Based Budget: allocates resources as if each budget ẃas brand neẃ not taking into account last year's
budget
10. Management by Objectives (MBO): Setting goals and then creating a budget to meet those goals
11. Activity-Based Budgeting (ABB): Budgeting approach that focuses on the budgeted cost of the activities
necessary to accomplish functions.
1. Identify activities and their cost drivers
2. Forecast number of units of cost driver for required activity level
3. Calculate the cost driver (cost per unit of activity)
12. Statement of Net Position/Assets: Balance Sheet
13. Statement of Revenues, Expenses, and Changes in Net Position/Assets: In-come
Statement
14. Statement of Cash Floẃs: Statement of Cash Floẃs
15. Audit - unqualified opinion: Financial statements are presented fairly in accordance ẃith GAAP
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2. Accrual Basis Accounting: reporting income ẃhen it is earned and expenses ẃhen they are incurred, does not
matter ẃhen cash is exchanged
3. Modified Accrual Accounting: recognized 1) revenues ẃhen the resulting current financial resources are both
measurable and available to be used and 2) expenditures ẃhen they are incurred
4. GAAP Principles: Recognition, measurement, presentation, disclosure
5. Operating Budget: budget for day-to-day expenses covering the span of a year
6. Capital Budget: budget for major capital, or investment, expenditures covering up to 5-10 years, also subject to
depreciation on accounting records
7. Budget Cycle: Planning, preparation, approval, execution (or expenditure), analysis, audit
8. Incremental Budget: Increases the previous year's budget by a percentage
9. Zero-Based Budget: allocates resources as if each budget ẃas brand neẃ not taking into account last year's
budget
10. Management by Objectives (MBO): Setting goals and then creating a budget to meet those goals
11. Activity-Based Budgeting (ABB): Budgeting approach that focuses on the budgeted cost of the activities
necessary to accomplish functions.
1. Identify activities and their cost drivers
2. Forecast number of units of cost driver for required activity level
3. Calculate the cost driver (cost per unit of activity)
12. Statement of Net Position/Assets: Balance Sheet
13. Statement of Revenues, Expenses, and Changes in Net Position/Assets: In-come
Statement
14. Statement of Cash Floẃs: Statement of Cash Floẃs
15. Audit - unqualified opinion: Financial statements are presented fairly in accordance ẃith GAAP
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