Finance: Budgeting, Assets, Liabilities, and Purchasing

Running head: FINANCE 1
FINANCE

Running head: FINANCE
Table of Contents
Question 1................................................................................................................. 3
Question 2................................................................................................................. 4
Answer 1............................................................................................................... 4
Answer 2............................................................................................................... 4
Answer 3............................................................................................................... 4
Answer 4............................................................................................................... 5
Question 3................................................................................................................. 5
Answer 1............................................................................................................... 5
Answer 2............................................................................................................... 6
Question 4................................................................................................................. 6
Question 5................................................................................................................. 6
Answer 1............................................................................................................... 6
Answer 2............................................................................................................... 7
Question 8................................................................................................................. 7
Answer 1............................................................................................................... 7
Answer 2............................................................................................................... 7
Answer 3............................................................................................................... 8
References................................................................................................................ 9

Running head: FINANCE
Question 1
i) Budget is document which helps to achieve our future goals with planning which is called
budget because it helps in finding the source of income and expenses. Budget is a way to
control your funds with the help of this we can easily understand our assets and liabilities and
how to utilize them in a systematic way four development of our business. With the help of
budget, the company does not suffer from deficiency of funds (Jia, Wu, Daniels and Snyder,
2016).
ii) Static Budget: Projection of future income/revenue and expenses in a statistic way, called
static budget this is rigid by nature. With variation in any level of activities e.g. volume of
sales, trends, does not change the static budget. A static budget is also a hindrance in a
situation where the market could change substantially. Static budgets follow proper schedule
and process (Shon, Porumbescu and Christensen, 2019).
Rolling budgets are those who continuously look after in the future. These types of budget
may give you liberty for variation in it according to market, trend, etc. the rolling budget
needs more attention and consideration from management than the static budget (Bednarska-
Olejniczak and Olejniczak, 2017).
iii) Budget is a method to motivate employees/crew because they have systematic efficient
funds that motivate them to take corrective and quick action. With the help of budget crew
know the actual funds and how to utilize them appropriately so that they do not face the
situation of lack of funds. Budget may use a successful tool but it requires the attention and
involvement of employees so they can know the formation process of budget and uses of it is
easy to control the results of budget (Shon, Porumbescu and Christensen, 2019).