Cash flow forecasting Flashcards
What is cash inflows?
The amounts of money entering a business’s bank account.
What is cash outflows?
The amounts of money leaving a business’s bank account.
What is net cash flow?
The difference between the cash inflow and outflow figures over a particular time period.
What is cash balance?
The amount of money forecast to be in the bank account after the net cash flow figure has been added or subtracted from the exciting bank balance.
What is the purpose of a cash flow forecast?
The aim of a cash flow forecast is to identify the possible inflows and outflows, to add them together in each category and to work out the difference.
What can businesses do to get more money?
They can overdraft or get a loan.
What is a overdraft?
A overdraft is a agreement.
What is a loan?
A loan is a way to borrow money but you’ve got to pay ti back over time with interest.
