(16–1) Define each of the following terms:

a. Working capital; net working capital; net operating working capital

b. Relaxed policy; restricted policy; moderate policy

c. Permanent current operating assets; temporary current operating assets

d. Moderate (maturity matching) financing policy; aggressive financing policy;

conservative financing policy

e. Inventory conversion period; average collection period; payables deferral period;

cash conversion cycle

f. Cash budget; target cash balance g. Transactions balances; compensating balances; precautionary balances h. Trade discounts i. Credit policy; credit period; credit standards; collection policy; cash discounts j. Account receivable; days sales outstanding; aging schedule k. Accruals; trade credit l. Stretching accounts payable; free trade credit; costly trade credit m. Promissory note; line of credit; revolving credit agreement n. Commercial paper; secured loan