ABSTRACT

Introduction ............................................................................................................ 238 Budgeting ............................................................................................................... 238

Master Budget ................................................................................................... 238 Budgeting in Pharmacy .......................................................................................... 239

Operating Budget and the Budget Cycle ........................................................... 239 Preparing the Budget .................................................................................... 239 Approving the Budget ..................................................................................240 Executing the Budget ...................................................................................240 Evaluating the Budget .................................................................................. 241

Capital Budget ................................................................................................... 241 Introduction to Accounting .................................................................................... 241

Definition of Accounting ...................................................................................242 Need for Accounting and the Accounting Entity Concept ................................242 Generally Accepted Accounting Principles ....................................................... 243 Financial Statements ......................................................................................... 243

Income Statement ......................................................................................... 243 Statement of Owner’s Equity .......................................................................244 Balance Sheet ...............................................................................................244 Statement of Cash Flows ..............................................................................245

Interpretation of Financial Statements ...................................................................246 Comparative Financial Statement Analysis .......................................................246