6.2 Cash Flow

Question 1

Cash flow

Answer 1

Money that flows into and out of a business on a day-to-day basis.

Question 2

Cash flow forecast

Answer 2

a plan of the expected inflows and outflows to and from a business over a period of time.

Question 3

Cash flow statement

Answer 3

a record of the cash inflows and outflows that took place over an earlier period of time

Question 4

Profit

Answer 4

Revenue - total costs. It counts as a profit when the number is positive.

Question 5

Loss

Answer 5

Revenue - total costs. It counts as a loss when the result is a negative number.