cashflow Flashcards
1
Q
what does liquidity mean?
A
how quick a business can get cash.
2
Q
what does insolvent mean?
A
when a company cant pay its debts.
3
Q
what is credit period?
A
the length of time given to customers to pay for goods or services.
4
Q
what is opening balance
A
the amount of cash available to a business at the start of a set period of time for example a month.
5
Q
what is closing balance
A
the amount of cash available to a business at the end of a set period of time for example a month.
6
Q
if a company has a closing balance of £2,000 at the end of march what will there opening balance for April be.
A
£2,000
7
Q
what is meant by a cash flow forecast?
A
a prediction of the flow of cash into a business in and out of the business a given period of time, normally a month.
