illess Language Match the terms list eat tory Te ch the terms listed with the definitions. Some terms will not be used 1. Wages or salary along with other financial benefits paid to employees 2. Conditions under which credit is a. account receivable extended by a lender to a borrower b. accounts payable 3. Products that have completed the man c. aging of accounts receivable ufacturing process and are ready to sell d. breakeven point 4. Amounts owed that need to be paid e. capacity within the next year 1. cash budget 5. Number calculated by dividing current & compensation assets by current liabilities h. credit policy 6. Loans that have no specific collateral I credit terms 1. current assets 7. Business expenses that do not change k current liabilities as the level of production changes I. current ratio 8. Money owed for the purchases cus- m. direct deposit Somers buy on credit n direct materials 9. The difference between current assets o finished goods and current liabilities p. fixed costs 10. Unfinished goods used by a manufac 4. inventory turer to create a finished product 1. inventory turnover 11. Manufactured items in various stages s. payroll record t. salary of completion u unsecured loan 12. Amounts owed for items bought on Credit tance ion ne, an ension ome as for ment V. variable costs w. wages X. work in process y, working capital Review Concepts 13. In a cash budget, a shortage would occur when cash receipts exceed cash payments working capital is declining Cient assets are less than current liabilities cash payments exceed cash receipts An example of a current asset is ability asser Tower a. a building 6. 13. In t akeven analy a manager's salary D urance te pas alysis, inventory d. land would be considered a variable cost. crent d. utilities 4. com rect compensation includes