Cash Flow Forecast Flashcards
1
Q
What is Cash Flow Forecast?
A
Simple statement showing cash inflows, cash flows and net cash flows as well as opening and closing balances
2
Q
What does a positive cashflow mean?
A
When Cash inflows are larger than cashflows
Doesnt mean firms making profit
3
Q
What is stable cashflows?
A
When both cash inflows and outflows are the same
4
Q
What is a negative cash flow
A
When outflows> inflows
5
Q
Why is cashflow useful?
A
Helps plan Maintains confidence of leaders Assists in decision making Monitors performance Support an application for finance Anticipates the need for finance
