cash flow Flashcards
1
Q
cash flow
A
the flow of money in and out of a business
2
Q
cash inflow
A
money coming into the business
examples: sales,loans,investments,sales of assets
3
Q
cash outflow
A
cash that goes out of a business
examples: materials,wages,depts
4
Q
why is cash flow forecasting needed?
A
• to identify cash shortages, making sure the business stays solvent
• to support applications for borrowing
• help planning the business
• monitoring cash flow
