Cash Flow Forecasting

Question 1

Liquid -

Answer 1

assets that are easily changed into cash

Question 2

Overheads -

Answer 2

money spent regularly on rent, insurance, electricity and other things that are needed to keep a business operating

Question 3

Insolvent -

Answer 3

inability to meet debts

Question 4

Cash flow forecast -

Answer 4

prediction of all expected receipts and expenses of a business over a future time period, which shows the expected cash balance at the end of each month

Question 5

Cash inflow -

Answer 5

flow of money into a business

Question 6

Cash outflow -

Answer 6

flow of money out of a business

Question 7

Net cash flow -

Answer 7

the difference between cash inflows and cash outflows

Question 8

Opening balance -

Answer 8

the amount of cash the business has at the beginning of the month

Question 9

Closed balance -

Answer 9

the amount of money the business expects to have at the end of each month

Question 10

Drawings -

Answer 10

money taken out of the business by the owner for personal use