3.7 Cash Flow Flashcards
1
Q
Cash Flow
A
Money that flows in and out of a business over a given period of time
2
Q
Insolvency
A
A situation where a business runs out of cash but may still be profitable
3
Q
Working capital cycle
A
The period of time between payment for goods supplied to a business and the business receiving cash from their sale
4
Q
Cash-flow forecast
A
The future prediction of a firm’s cash inflows and outflows over a given period of time
5
Q
Net cash flow
A
The difference between the total cash inflows and the total cash outflows
6
Q
Cash inflows
A
Money received by a business
7
Q
Cash outflows
A
Money paid out by a business
