Margie's Flower Shop Is Interested in Improving Her Performance in the Area

question 79

Essay

Margie's Flower Shop is interested in improving her performance in the area of financial areas.This interest came about after Margie had her year-end financial statements prepared and,although she had net income,her cash flow was inadequate.Margie has discussed her problems with her neighboring store,an auto supply retail store.
Required:

List five financial processes that Margie and the auto supply business have in common.

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Definitions:

Wages and Salaries

Monetary compensation paid to employees for their labor, with wages typically referring to hourly pay and salaries to annual earnings.

Planning Budget

An initial budget prepared based on estimates of what revenues and costs should be before a period begins, often used for setting goals and objectives.

Net Operating Income

The income earned by a company from its main business activities before subtracting interest and tax expenses.

Revenue and Spending Variance

The difference between the actual and budgeted figures for both revenue and expenses, indicating a company's financial performance.