Cash And Cash Flow Flashcards
1
Q
Define cash flow
A
The movement of money in and out of a business over time
2
Q
Equation of cash flow
A
Cash inflow - cash outflow =net cash flow
3
Q
What are three steps to get out of a negative cash flow
A
negotiate an
overdraft
facility
keep costs under control
keep cash coming into the business
4
Q
Formula for profit
A
Revenue-costs
5
Q
Define opening balance
A
The opening balance is the amount of money a business starts with at the beginning of the
reporting period
, usually the first day of the month:
6
Q
A
