Cash flow forecasts - E

Question 1

What does cash flow forecast mean?

Answer 1

Cash flow forecast – a document that shows the predicted flow of cash into and out of a business over a given period of time, normally 12 months.

Question 2

What does opening balance mean?

Answer 2

Opening balance – amount of cash available in a business at the start of a set time period, for example a month.

Question 3

What does closing balance mean?

Answer 3

Closing balance – amount of cash available in a business at the end of a set time period, for example a month.

Question 4

What does credit period mean?

Answer 4

Credit period – the length of time given to customers to pay for goods or services received.

Question 5

What does liquidity mean?

Answer 5

Liquidity– measures a firm’s ability to meet short-term cash payments.

Question 6

What does insolvent mean?

Answer 6

Insolvent – when a firm is unable to meet short-term cash payments.Possible Pic to fill????