When receipts exceed payments ( Receipts > Payments ) cash may be deposited into savings account or invested.

Deposit all cash received, and make payments by check

An estimate of future cash receipts and cash payments for a specific time period

difference between current assets and current liabilities

Are items of value that will be converted int ocash within a year

Are amounts due to be paid within the next year

The merchandise an organization plans to sell to customers, it is considered fairly liquid and it is part of a company's current assets.

also called raw materials, are unfinished goods used by a manufacturer to create a finished product

These are also called unfinished goods, have value added to them.

Products that have completed the manufacturing process and are ready to sell

A measure commonly used to determine how many times inventory is sold and replaced. This measure is calculated by dividing sales by inventory

(sales)/(inventory)=? Ratio

The point of no profit, the exact median of inventory turnover because there is no losses and there is no profit.

Business expenses that do change in proportion to the level of production

Business expenses that do not change as the level of production changes

Refers to the wages or salary along with other financial benefits paid to employees

The compensation method where earnings of workers calculated on an hourly basis. A person's total earnings are determined by the hourly rate of pay multiplied by the number of hours worked.

Compensation method where workers are paid per unit of output

Compensation method where money is earned as a percent of sales volume.

Form that documents each employee's pay history.

A deposit that electronically transfers net pay into the employee's bank account, the employee will still receive a pay stub, but it also can be done electronically.

Business decide who can build on account, they will create a credit policy. These are guidelines used for the approval of credit customers

The ability of the borrower to repay money owned.

Specific asset that can be sold to satisfy debt

Loans that have no specific collateral and are a much higher risk for the lender.

Conditions under which credit is extended by a lender to a borrower.