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