Cash Flow Forecast Flashcards

0
Q

Define cash flow statement?

A

To show what has happened in terms of income and expenditure over the past 6months/year

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1
Q

Define cash flow forecast?

A

It is a prediction of income and expenditure over the next 6months/year

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2
Q

Reasons for a cash flow forecast?

A
  • helps identify shortfall
  • identify surpluses
  • helps plan for the future
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3
Q

Define receipts?

A

This will be and estimate of the predicted sales revenue for each month.

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4
Q

Formula for receipts?

A

Amount sold * selling price

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5
Q

Define payments?

A

This section will detail the payments that the firm expects to have to make during the year.

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6
Q

Define net cash flow?

A

This will show the difference between the total payments and the receipts

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7
Q

Define opening balance?

A

This shows the money that a firm has carried over from a previous month

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8
Q

Define closing balance?

A

This is the difference between the net cash flow figure and the opening balance

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