Exam 6: Managing and Reporting Working Capital

A deposit in transit is a cash deposit that has not yet been included in the Cash Account.

What controls should a business establish for cash sales?

Bank reconciliations enable the business to report the correct cash balance on its income statement.

Other terms for working capital management are investment capital management and long-term financial management.

Other terms for working capital management are operating capital management and short-term financial management.

What are the steps in preparing the bank reconciliation?

Requiring an employee who does not handle accounting records to open the mail is an example of:

The term working capital represents the net resources that managers have to work with in the business' ____________________ ____________________.

Credit card sales are not the same as an accounts receivable, meaning credit card receipts are often referred to as ____________________.

Working capital is the excess of total assets over total liabilities.

If the accounts payable balance is too large in relation to business' current assets, the business will begin to experience ____________________ problems.

____________________ are the amounts that a business owes to its suppliers for previous credit purchases of inventory and supplies.