Working Capital

2. receivable: an instrument of debt written by the seller of goods and services and accepted by the buyer of goods and services
4. order quantity: the order quantity that minimizes the total holding costs and ordering costs
8. budget: an estimation of the cash inflows and outflows for a business over a specific period of time
9. in time: denoting a manufacturing system in which materials or components are delivered immediately before they are required in order to minimize storage costs
10. engage in more business than can be supported by the market or by the funds or resources available
11. when a company sells its invoices to a factor
14. ratio: a liquidity ratio that measures a company's ability to pay short-term and long-term obligations
16. test: a conclusive test of the success or value of a firm

1. oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold
3. buying goods or assets
5. market: short term finance market
6. period: average number of days it takes a firm to collect its accounts receivable
7. a complete list of items such as property, goods in stock, or the contents of a building
12. bills: short term bills issued by rbi
13. payable: due but not paid
15. overdraft: the amount of checks presented to the bank for payment exceeds the amount on deposit