Hospitality Management Accounting: Cash Management

These flashcards cover essential terms and concepts related to cash management in hospitality management accounting.

Cash management

The management of money to ensure that bills and debts are paid when due, and to maintain an optimal cash balance.

Cash receipts

Money received by a business from sales, services, or other sources.

Cash payments

Money paid out by a business for expenses, liabilities, or other obligations.

Cash budget

A financial plan that outlines expected cash inflows and outflows over a specific period.

Accounts receivable

Money owed to a company by its customers for goods or services provided on credit.

Accounts payable

Money a company owes to its suppliers or creditors for goods and services received.

Net income

The total revenue minus total expenses, often not indicative of actual cash on hand.

Operating cash flow

The cash generated from a company’s regular business operations.

Discretionary spending

Expenditures that can be postponed without serious consequences, such as purchasing new capital assets.

Liquidity

The availability of liquid assets to a market or company.

Capital assets

Long-term assets used in the production of goods and services, such as equipment and property.

Fixed asset

An asset that is not expected to be converted into cash within a year, typically used for long-term business operations.

Credit sales

Sales made on credit rather than paid in cash at the time of purchase.

Cash flow cycle

The process of cash inflows and outflows over a given time period within a business.

Cash disbursement

The payment of cash for various business expenses or liabilities.

Excess cash

The surplus cash available after all financial obligations are met.

Shortage of cash

A situation where cash available is not enough to meet the company's obligations.