BUSS1030 Lecture Notes - Lecture 12: Financial Statement, Budget, Accounts Payable

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: Steven Hitchcock

Document Summary

The relationship between corporate objectives, long-term plans and budgets: The corporate objectives of a business identify the broader goals of the business wealth enhancement. Budgets need to be set and applied to achieve these strategic goals or corporate objectives. These objective and goals can be identified from a business"s position, mission and value statement: Vision statement: a statement regarding the business"s vision of the future in broad terms. Mission statement: a short, written description of the aims / purpose of a business, charity, government department, or public organization . Vision statement: a statement of what a company or an organization would like to achieve in the future . Position statement: current position of the business relative to its desired position. Budget: a short-term financial plan, usually for 12 months. A budget converts the long-term plan into an actionable blueprint for the future. Thus, budgets are prepared much more frequently than long-term (strategic) plans.