Cash Budget
When a customer buys on credit, the money owed for these purchases is called
What is accounts receivable?
the merchandise an organization plans to sell to customers
What is inventory?
Refers to the wages or salary along with other financial benefits paid to employees.
What is compensation?
the ability of the borrower to repay money owed
What is capacity?
an example of a voluntary payroll deduction is
a. federal income tax
b. medicare
c. saving account deposit
d. social security
What c. saving account deposit?
Items of value in an organization that will likely be converted into cash within a year
What is current assets?
name the three types of inventory
What is Direct material, work in process and finished goods?
Refers to earnings of workers calculated on a hourly basis.
What is wages?
Loans that needs no collateral.
What is unsecured loans?
list 3 inventory costs
1. storage and tracking costs
2. insurance, taxes, and interest
3. losses due to spoilage, damage, and theft
amounts owed that need to be paid within the next year
What is current liabilities?
another name for direct materials
What is raw material?
Refers to earnings calculated on the basis of time period, usually weekly, bi-weekly, or monthly
What is salary?
the conditions under which credit is extended by a lender to a borrower.
What is credit terms?
business expenses that do not change as the level of production changes.
What are fixed costs
one of the most common current liabilities in which the amount owed to suppliers and others for items bought on credit by the company.
What is accounts payable?
Another name for work in process.
What is unfinished goods?
The form that documents each employee's pay history.
What is payroll record?
the activity involves categorizing accounts receivable based on how long they have been due
What is aging of accounts receivable?
Labor costs, production materials, and utilities are considered ____________
What is variable costs?
Another name for current ratio.
What is liquidity ratio?
Products that have completed the manufacturing process and are ready to sell
What are finished goods?
A system that electronically transfers net pay into an employee's bank account.
What is direct deposit?
this is created when a deciding who can buy on credit. it details the guidelines use for approval or credit customers.
What is credit policy?
name two voluntary deductions
What is health or life insurance, savings for future personal use, deposits to retirement funds, charitable donations, union dues or dues for other employee organizations