3.7 Glossary of key terms
Unit 3.7 Glossary of key terms - Cash flow Key term Definition Bad debt This occurs when a debtor is unable to pay outstanding invoices to the business. The result is it reduces the cash inflows for the vendor (seller). Cash The money a business has, either “in hand” (at its premises) and/or “at bank” (i.e., in its bank account). It is the most liquid of a firm’s current assets and is easily accessible. Cash flow The...