cashflow Flashcards
1
Q
cashflow
A
defined as the flow of money going into and out of a business organisation
2
Q
inflows
A
sales, loans
3
Q
outflows
A
stock, electricity
4
Q
opening balance
A
money at the beginning of the month
5
Q
closing balance
A
money you have at the end of the month
6
Q
net cashflow =
A
inflow - outflow
7
Q
closing balance =
A
opening balance + inflow - outflow
8
Q
what is the purpose of a cashflow forecast
A
so a business can plan in advance so they know if they are going to have a negative closing balance
9
Q
causes of cashflow
A
seasonality , poor financial planning, overheads unmanageable
10
Q
sale and lease back
A
selling a factory and paying the new owners
11
Q
debt factoring
A
where you pay money to a company who choose your debts for you
