Cash
Cash budget
A cash budget identifies when, how, and why cash is expected to come into the business, and when, how and why it is expected to leave
Growth Trap
A financial crisis that is caused by a business growing faster than it can be financed
Timing purchases
A method of controlling the timing of cash outflows that is invisible to suppliers and vendors
Overdraft
A negative balance in a depositor's bank account
Clearing house
An entity that processes checks and electronic fund transfers for banks and other financial organizations
Short-term debt
Any debt that must be paid in less than one year from the date of the financial statement on which it is reported
Bearer
Any person or business entity who possesses a security
Cash equivalents
Assets that may be quickly converted to cash.
Factoring receivables
Borrowing money secured by a firm's accounts receivable
Cash flow from operations
Cash can be obtained by selling the products and services of the business and collecting cash from customers.
Cash flow from investing
Cash can be obtained from investments the business has made, such as stocks, bonds, land, buildings, or equipment
Deposit and progress payments
Cash payments received before product is completed or delivered
Operating cycle
Cash-to-cash cycle is also called...
Cash account
Company book balance is also called
Float
Delays in the movement of money among depositors and banks
Demand Deposits
Money held in checking and savings account i
Cash
Money that is immediately available to be spent
1. Larceny, 2. Skimming, 3. Phony disbursements
Most COMMON ways employees steal cash
Commercial paper
Note issued by credit-worthy corporations
Trade discounts
Percentage discounts from gross invoice amounts provided to encourage prompt payment
Non-core projects
Revenue-producing tasks and activities related to, but not part of, the primary strategy of a business
Non-cash incentives
Rewards that don't require payment of cash, such as stock options, compensating time off, or added vacation days
Currency
The bills and coins printed by government to represent money.
Consignment
The practice of accepting goods for resale, without taking ownership of them and without being responsible to pay prior to their being sold
Barter
The practice of trading goods and services without the use of money
Company book balance
The sum of cash inflows and cash outflows recorded in the firms accounting records
Gaming the payment process
Using methods to appear to be paying bills on time, when in fact payment is being delayed or avoided
Sources of cash flow
operations, investing, financing
Cash receipts budget
A schedule of the amounts of timings of the receipt of cash into a business
Non sufficient funds
A situation that occurs when a check is returned to a depositor because the writer of the check did not have a bank available balance equal to or greater than the amount on the check
Money
A store of value that can be saved for later purchases
Receivables
Amounts that are owed to a business for merchandise that was sold on credit
Reconciling
An accounting process that identifies the causes of all differences between book and bank balances
Discounts for prompt payment
A reduction in sales price provided to credit customers for paying outstanding amounts in a timely manner
Charge back
A reduction in the bank account of a merchant by a credit card company
Cash disbursements budget
A schedule of the amounts and timings of payments of cash out of a business
Payable
Amounts owed to vendors for merchandise or services purchased on credit
Money
Is a medium of exchange accepted by the community or what people buy things with and sell things for.
Money
Provides a standard of measuring value, so that the worth of different goods and services can be compared
1. exchanges 2. wealth
Purpose of Money: 1. To make _______ 2. To keep track of ______ or value
Marketable securities
Stocks and bonds that are traded on an open market
Bank ledger balance
The sum of deposits and withdrawal recorded in a bank's accounting records
Bank available balance
The sum of money that is actually been received and paid out of a depositors account
Cash-to-cash cycle
The time that is required for a business to acquire resources, convert them into product, sell the product, and receive cash from the sale