cash flow Flashcards
1
Q
what is cash?
A
money that the business has available to it straight away, such as funds available in their bank account
2
Q
what is a forecast?
A
a technique where the business attempts to estimate future sales, cash flow or other financial variables
3
Q
what is cash flow statement?
A
a record of the cash inflows and outflows that took place over an earlier period of time
4
Q
Net cash flow formulae
A
NET CASH FLOW = RECEIPTS - PAYMENTS
5
Q
closing balance formulae
A
CLOSING BALANCE = NET CASH FLOW + OPENING BALANCE
6
Q
3 types of inflows
A
Income from sales
Loans from bank
Money invested by the business’s owners
