3.2 Cash Flow Forecasting Flashcards
1
Q
Why is cash important to a business?
A
- To pay wages
- to pay suppliers
- to pay expenses
2
Q
What is a cash flow forecast?
A
It estimates the future cash inflows and outflows for businesses
3
Q
What is a net cashflow?
A
it is the cash inflow - cash outflow
4
Q
What is the difference between cash and profit?
A
Cash refers to the amount of money available to be used, profit is money left after deducting all expenses.
