The Use of Cheques Has Dropped from 49

question 43

Essay

The use of cheques has dropped from 49.6% of all payments in 1994 to well below 9.8% of all payments in 2007. Why do you think this is so?

---

Definitions:

Non-Cash Items

Expenses or incomes recorded in accounting but do not involve any actual cash flow, such as depreciation, amortization, or stock-based compensation.

Capital Spending

Expenditures by a company for physical assets like property, industrial buildings, or equipment.

Net Working Capital

The financial difference marked by a company's present assets against its present liabilities, suggesting the company's economic condition in the short run.

Cash Flow

Cash flow refers to the net amount of cash and cash-equivalents being transferred into and out of a business, indicating its operational efficiency and liquidity.