Cash flow Flashcards

1
Q

What is cash flow?

A

Cash flow is the net inflows and outflows of a business over a specific time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How to improve CFF?

A

Improve revenue
Changing Pricing Strats
Reducing overheads
cut costs
Sources of finance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Net cash flow formula?

A

Cash inflows-outflows

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Closing balance formula?

A

Opening balance + Net cash flow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why should firms use CFF?

A

Predicts when you may have a liquidity problem

Ensures you can cover costs (Overheads)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are examples of poor Cash flow forecasting?

A

Poor sales
Over trading (too much stock)
Not managing Debtors/creditors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly