Benefits And Limitations Of Cash Flow Forecasts Flashcards
1
Q
What does a cash flow forecast allows the business to do
A
Track inflows and outflows
2
Q
How does cash flow forecasts help areas of concern in the business
A
Helps monitor cash flow and anticipate where corrective action needs to be taken
3
Q
How does cash flow forecasting help with inflows
A
Can be used as a part of a business plan to help secure finance
4
Q
What’s the main issue with cash flow forecast
A
Based on a forecast therefore may not be accurate
5
Q
What’s the issue of planning ahead in cash flow forecast
A
Unforeseen changes can impact the forecast such as a change in material costs
