Cash flow planning Flashcards
1
Q
Cash flow
A
Cash inflows and outflows over a period of time
2
Q
Cash inflows
A
Sums of money received by a business during a period of time
3
Q
Cash outflows
A
Sums of money paid out by a business
4
Q
Cash flow cycle
A
Stages between paying out cash for labour, materials and receiving cash from sales
5
Q
Insolvency
A
Business runs out of cash
6
Q
Cash flow forecast
A
Estimates the future cash flow on a month by month casis
7
Q
Net cash flow
A
Difference between inflows and outflows
8
Q
Cash problems be solved
A
- Bank loans when the business has negative cash flow
- Delay expenses
- Increase forecasted cash income in some way
- Delay payments
