Cash Flow Forecasting

Question 0

Debtors

Answer 0

The customers who have bought goods or services on credit from the company and have yet to pay

Question 1

Creditors

Answer 1

Supplies from whom the business has bought goods and whom the business has yet to pay

Question 2

Capital Expenditure

Answer 2

Spending on fixed/non-current assets, eg. property, large equipment, vehicles

Question 3

Cash Flow

Answer 3

The movement of cash in and out of a business over time

Question 4

Cash Flow Forecast

Answer 4

The process of estimating the size and timing of cash inflows and outflows within a business

Question 5

Cash Inflows

Answer 5

Receipts of cash into a business

Question 6

Cash Outflows

Answer 6

The transfer of cash from a business to another business or individual

Question 7

Insolvency

Answer 7

When a business cannot meet it’s short-term debts

Question 8

Liquidity

Answer 8

The ability of a firm to meet it’s short term liabilities. This is measured by comparing current assets with current liabilities

Question 9

Overtrading

Answer 9

A rapid growth which places a significant burden on a firm’s ability to meet it’s debts