Management 350 Chapter 13

___________ is a financial crisis that is caused by a business growing faster than it can be financed.

growth trap

The ________- balance is the sum of deposits and withdrawals recorded in a bank's accounting records.

bank ledger

___________ is the practice of trading goods and services without the use of money.

barter

____________ is money that is immediately available to be spent.

cash

The ________ identifies when, how, and why cash is expected to come into a business, and when, how, and why it is expected to leave.

cash budget

The ________ budget is a schedule of the amounts and timings of payments of cash out of a business.

cash disbursement

Assets that may be quickly converted to cash are called ________.

cash equivalents

____________ is planning and tracking the amounts and timing of money to be received and paid during the business cycle.

cash flow management

-Unexpected decreases in sales -Difficulty collecting money from customers. -Seasonal variations in sales These all describe the primary cause of _____________.

cash flow problems

-A company has to have good credit. -It is considered short-term financing. -It is issued to be paid to the bearer. -Note issued by creditworthy corporations These statements describe what?

commercial paper

Money held in checking and savings accounts are/is called __________.

demand deposits

Which transactions go through a clearinghouse?

drafts, checks, electronic transfers

Borrowing money secured by a firm;s accounts receivable is called ___________ receivables.

factoring

Business can earn cash flow from operations, investing, and ____________.

financing

-Not paying the bill when it is due. -Stopping payment on a check after the payment has been recorded, but not cleared. -Forgetting to sign the check. These all describe ________________.

gaming the payment process

Using methods to appear to be paying bills on time when in fact payment is being delayed or avoided

gaming the payment process

__________ consists of stocks and bonds that are traded on an open market.

marketable securities

_____________ is a medium of exchange accepted by the community.

money

Rewards that do not require payments of cash are called __________ incentives.

noncash

____________ projects are revenue-producing tasks and activities that are related to, but not part of, a businesses primary strategy.

noncore

Amounts that are owed to vendor for merchandise or services purchased on credit are known as ___________.

payables

_______________ are amounts that are owed to a business for merchandise that was sold on credit.

receivables

An accounting process that identifies the causes of all difference between book and bank balances is known as __________.

reconciling

An accounting process that identifies the causes of all difference between book and bank balances is known as ___________-.

reconciling

T or F: Timing purchases is a technique that can provide a business with extra time to pay a bill for inventory, equipment, or services.

true

A __________ budget is a schedule of the amounts and timings of the receipt of cash into a business.

cash receipts

An entity that processes check and electronic fund transfers for banks and other financial organizations is called a ____________.

clearinghouse

The sum of the cash inflows and outflows recorded in a firm;s accounting records is the ____________ balance.

company book

A __________ budget is the set of budgets that details all projected receipts and spending for the budget period.

comprehensive (master)

The cash-to-cash ____________, also called the ____________ cycle, is the time that is required for a business to acquire resources, convert them into products or services, sell them, and receive cash.

cycle, operating

Selling season tickets or other forms of advance purchases prior to customers using the product or service is called a __________, while requiring payments as predetermined goals are achieved during a lengthy project are referred to as ____________ payments.

deposit, progress

A reduction in the sales price provided to credit customers for paying outstanding amounts in a timely manner is referred to as a ___________ for prompt payment.

discount

What are the three best strategies for handling cash shortfalls ranked in order?

use personal money, borrow, adjust scheduled purchases, adjust scheduled payments

The ________ balance is the sum of money that has actually been received and paid out of a depositor's account.

bank available

A reduction in a merchant's bank account by a credit card company is called a(n) ____________.

charge back

____________ is the practice of accepting goods for resale, without taking ownership of them and without being responsible to pay prior to them being sold.

consignment

What are the 3 most common means by which employees steak cash from their employers?

larceny and embezzlement, skimming, phony disbursements