Cash Flow Flashcards
What is Cash Flow Forecast?
Cash Forecast is a good way to predict is you may face liquidity problems (Lack of Cash). Estimating the size of timing of cash inflow and outflow within a business. This would also predict the net cash flow.
What is the Net Cash Flow Equation?
Cash Inflow - Cash Outflow = Net Cash Flow
What is Net Cash Flow?
The difference between the Cash Inflow and the Cash Outflow. As it would be the difference of the amount of income and the amount you spend.
What is Cash Inflow?
Cash inflow is the receipt of cash into a business. Cash inflow is also the amount of money that comes into the business such as the income.
What is Cash Outflow?
Cash outflow is the transfer of cash out of the business. Cash outflow is also the amount of money that the business spends, such as paying day to day utility bills.
What is the difference between Cash and Profit?
Cash is money a company can spend immediately, profit is the amount of money a company earns after costs have been taken into account.
What is Cash?
Cash is the money a company can spend immediately
What is the other name of Cash Inflow + Cash Outflow in a forecast or finance table?
Cash Inflow = Total Receipts
Cash Outflow = Total Payments
