1. CHAPTER OBJECTIVES © SOUTH-WESTERN EDUCATIONAL PUBLISHING FINANCIAL RECORDS IN A BUSINESS nDiscuss record keeping systems needed in large and small businesses. nIdentify and discuss types of records used in business. nDefine depreciation, obsolescence, and other accounting terms. nGive two reasons why assets should be safeguarded against damage or loss. nDescribe different types of business budgets. nExplain how businesses use budgets to help them run efficiently. 1515

2. © SOUTH-WESTERN EDUCATIONAL PUBLISHING RECORD SYSTEMS nSystems in small businesses nSystems in large businesses

3. © SOUTH-WESTERN EDUCATIONAL PUBLISHING TYPES OF RECORDS nAccounting for cash nReceipt and payment records nDepreciation records nSpecial asset records nTax records nPayroll records

4. © SOUTH-WESTERN EDUCATIONAL PUBLISHING USING AND KEEPING RECORDS nAccurate and up to date nStorage and retrieval nProtection from hazards

5. © SOUTH-WESTERN EDUCATIONAL PUBLISHING BUDGET SYSTEMS nSuccessful businesses 1. Keep recommended accounting records 2.Have accountant audit accounts 3.Take merchandise inventory more than once a year 4.Operate under a budget

6. © SOUTH-WESTERN EDUCATIONAL PUBLISHING TYPES OF BUDGETS nSales budget nMerchandising budget nAdvertising budget nCash budget nCapital budget nIncome statement budget

7. © SOUTH-WESTERN EDUCATIONAL PUBLISHING ADMINISTERING THE BUDGET nHave three estimates nCheck estimates against actual conditions nManage the variance