MGT 3360 - Ch. 14 Vocab

cash disbursement budget

38. A _____________________________

cash-to-cash cycle

A firm uses cash to purchase raw materials and other things it needs to manufacture its product, which it then sells and converts into cash to start the whole process over again. This is known as ________________________.

bearer

A(n) __________________ is the person or company that holds a security.

overdraft

A(n) ________________________ may be issued by your bank if you write a check for more than what is in your account.

clearing house

An entity that processes checks and electronic transfers for banks and other financial organizations is a(n) ___________________________.

short term debt

Any debt that is to be repaid within one year from the time in which it was entered is _________________________

currency

Bills and coins printed by a government are ___________________.

company book balance

Difference between the inflows and outflows of cash in the companies records is the ___________________________

chargeback

If a customer challenges a charge on their charge card, the credit card company will remove it from your account in a process known as __________________________.

growth trap

If expanding your operation will bring you more money, but you don't have the money you need to expand, you may be a victim of the ______________.

payables

If you buy things on credit you have _________________________.

demand deposits

Money held in checking and savings accounts are ___________________.

float

Once an individual or firm writes a check, there is a period of time between that and the actual transfer of money out of the account; this is known as _________________________.

barter

Rather than buying something outright, you may be able to trade something your firm does; this is known as _____________________.

marketable securities

Stocks and bonds sold on the open market are ______________________.

bank ledger balance

The ____________________________ is the bank's number that represents the results of all transactions to your account.

bank available balance

The ____________________________ is the money actually available in your bank account for your use.

cash budget

The ______________________________ explains what the small business expects their cash flows to look like.

comprehensive budget

The _______________________________ is another term for master budget.

cash receipts budget

The ________________________________ tells a firm when and how much cash it expects to receive.

consignment

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

non-sufficient funds

When a customer's check is returned to your account because the customer did not have enough money in their account, the check has been returned for ________________________.

gaming the payment process

While there are ethical implications in _________________________, small business owners will occasionally send a check without signing it or other such ways of delaying a payment.

cash equivalents

______________________ are assets that can quickly be turned into cash.

cash

______________________ is a form of money that is available to be spent immediately.

profit

______________________ is revenue less expenses.

money

_______________________ is a medium of exchange accepted by a community.

reconciliation

_______________________ occurs when an individual or firm compares their company book balance to the bank ledger balance and attempts evaluate differences in the two numbers.

commercial paper

___________________________ is a fully transferable paper issued by a creditworthy corporation.

operating cycle

___________________________ is another term for what was described in question two above.

timing purchases

____________________________ means purchasing supplies in such a way to take advantage of the longest time until payment is needed.

receivables

____________________________ occur when you sell your product on credit.

trade discounts

_____________________________ are offered by your suppliers in order to entice you to pay promptly.

non-core projects

______________________________ are jobs that fall outside of the company's primary strategy.

non-cash incentives

______________________________ such as vacation time may be offered employees in lieu of salary increases, bonuses or other payments.

factoring receivables

_______________________________ is borrowing against accounts receivable.

deposits & progress payments

______________________________________ are cash payments received before the product is delivered or completed.

discounts for prompt payment

______________________________________ can be offered to encourage customers to pay bills in a timely manner.