Sometimes Vincent Doesn't Have Enough Cash on Hand to Send

question 21

Short Answer

Sometimes Vincent doesn't have enough cash on hand to send in the monthly taxes withheld from his employees' paychecks. This could be the result of a single-minded focus on production or because of a casual _____.

---

Definitions:

Compensating Balance

A minimum balance that must be maintained in a bank account, often required by banks as a condition for granting a loan or extending credit.

Assigned Receivables Financing

A financing method where a company uses its accounts receivable as collateral to receive a loan or advance.

Accounts Receivable Factoring

A financial deal in which a company trades its outstanding invoices to an external entity at a reduced price to get cash instantly.

Wholesale Nursery

A business specializing in growing plants in bulk for sale primarily to retailers, landscapers, and other businesses, rather than directly to the public.