1. Business Financial Records
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Business Financial Records
15.1 Types of Financial Records
15.2 Budgets and Budgeting
15.3 Financial Reports
15.4 Analyzing Financial Data

2. 15.1 Types of Financial Records
BUSINESS MANAGEMENT
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15.1 Types of Financial Records
DLTs
Describe why businesses need to maintain financial records.
Identify and discuss the purpose of several types of business financial records.
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3. Financial Records Record-keeping systems
Accounting and data processing
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4. Types of Financial Records
Cash records
Credit records
Depreciation records
Special asset records
Tax and payroll records
Protecting business records
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5. 15.2 Budgets and Budgeting DLTs
Describe the uses of several types of business budgets.
Discuss the reasons managers prepare more than one budget estimate.
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6. Business Budgets Importance of budgets Types of budgets
Start-up budget
Operating budget
Cash budget
Capital budget
Sales budget
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7. Administering the Budget
Prepare three budget estimates
Use budget to monitor
Make adjustment
Compare budgets to actual results
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8. 15.3 Financial Reports DLTs
Describe the contents and explain the purpose of a balance sheet.
Describe the contents and explain the purpose of an income statement.
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9. Financial Performance and Financial Conditions
Keep thorough and accurate records
Prepare important financial reports regularly
Interpret the financial information in the reports
Make decisions that will have a positive influence on future financial results
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10. The Balance Sheet Kinds of financial data
Value of balance sheet information
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11. The Income Statement Kinds of financial data
Value of income statement information
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12. Analysis of Budgeted Income Statement
Total Operating Expenses, 48.1%
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13. 15.4 Analyzing Financial Data
DLTs
Describe several types of financial analysis that help in the understanding of a business’s financial condition.
Identify where business owners and managers can turn to get help with understanding and using financial information.
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14. Using Financial Information
Cash flow
Working capital
Financial ratios
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15. Cash Flow
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16. Working Capital
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17. Average Merchandise Inventory
Financial Ratios
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Sales
Net Profit
Return on Sales
Shows how profitable a firm was for a specified period of time
Average Merchandise Inventory
Cost of Goods Sold
Inventory Turnover
Shows whether the average monthly inventory might be too large or small
Current Liabilities
Current Assets
Current Ratio
Shows whether a firm can meet its current debts comfortably
Owners’ Equity
Return on Owners’ Equity
Shows whether the owners are making a fair return on their investment
Total Assets
Return on Investment
Shows rate of return on the book value of everything owned in the business
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18. Sources of Financial Information
Accountants
Bankers
Consultants
Government
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