Financial managers: Those managers are responsible for planning and overseeing
the financial resources of the firm.
Finance (corporate finance): The business function involving decisions about a
firm’s long-term investments and obtaining the funds to pay for those investments.
Cash flow management: Managing the pattern in which cash flows into the firm
in the form of revenues and out of the firm in the form of debt payments.
Financial control: The process of checking actual performance against plans to
ensure that the desired financial status is achieved.
Financial plan: A description of how a business will reach some financial position
it seeks for the future; includes projections for sources and uses of funds.
Credit policy: Rules governing a firm’s extension of credit to customers.
Inventory: Materials and goods currently held by the company that will be sold
within the year.
Raw materials inventory: That portion of a firm’s inventory consisting of basic
supplies used to manufacture products for sale.
Work- in- process inventory: That portion of a firm’s inventory consisting of
goods partway through the production process.
Finished goods inventory: That portion of a firm’s inventory consisting of
completed goods ready for sale.
Trade credit: The granting of credit by a selling firm to a buying firm.
Open- book credit: Form of trade credit in which sellers ship merchandise on faith
that payment will be forthcoming.
Promissory note: Form of trade- credit in which buyers sign promise-to-pay
agreements before merchandise is shipped.
Trade draft: Form of trade credit in which buyers must sign statements of
payment terms attached to merchandise by sellers.
www.notesolution.com Trade acceptance: Trade draft that