Sometimes When Businesses Are Critically Delinquent on Their Tax Liabilities,the

question 92

Essay

Sometimes when businesses are critically delinquent on their tax liabilities,the tax authority comes in and literally seizes the business by chasing all of the employees out of the building and changing the locks. What does this tell you about the importance of taxes relative to our discussion of cash flow?
Why might a business owner want to avoid such an occurrence?

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Definitions:

Petty Cash

A small amount of cash kept on hand for minor, incidental expenses.

Cash Over And Short

An account used to report minor discrepancies between physical cash amounts and accounting records.

Receipts For Disbursements

These are documents that serve as proof of payment transactions, such as the payment of expenses or the distribution of cash.

Petty Cash Fund

A minimal sum of money kept in reserve for covering minor costs that aren't worth issuing a check for.