Glossary Term Explanation An estimate of income and/or expenditure over a Budget forthcoming period of time Increases in a company’s resources from the sale of Revenue goods or services or outgoings incurred in the normal course of Expense business to generate revenues Economic resources that are owned or controlled by an Asset entity Amounts owed by the business to creditors, Liability governments, employees and other parties Revenue from the sale of goods or services to Sales customers Revenue from the sale of goods or services to Income customers. Also used to describe profit A measure of the overall performance of a business; Profit equal to revenues minus expenses for the period Overheads Ongoing operating expenses Period of time that the budget plans for revenue and Budgeting period expenses. This is usually one year Person, group or organisation with an interested in or Stakeholders affected by the budget Segment of a business identified by the nature of the Activity centres activities the segment conducts Segment of a business that generates revenue and Profit centre incurs expenses Cost centre Segment of a business that incurs expenses only of people in an organisation that create and Budget committee maintain budgets and the budget process
Glossary Term Explanation Budget An estimate of income and/or expenditure over a forthcoming period of time Revenue Increases in a company’s resources from the sale of goods or services Expense or outgoings incurred in the normal course of business to generate revenues Asset Economic resources that are owned or controlled by an entity Liability Amounts owed by the business to creditors, governments, employees and other parties Sales Revenue from the sale of goods or services to customers Income Revenue from the sale of goods or services to customers. Also used to describe profit Profit A measure of the overall performance of a business; equal to revenues minus expenses for the period Overheads Ongoing operating expenses Budgeting period Period of time that the budget plans for revenue and expenses. This is usually one year Stakeholders Person, group or organisation with an interested in or affected by the budget Activity centres Segment of a business identified by the nature of the activities the segment conducts Profit centre Segment of a business that generates revenue and incurs expenses Cost centre Segment of a business that incurs expenses only Budget committee of people in an organisation that create and maintain budgets and the budget process
TM_Prepare_&_monitor_budgets_refined.docx