cashflow statements (term two) Flashcards
1
Q
the formula for a cash balance
A
inflows - outflows
2
Q
the formula for a closing balance
A
opening balance + inflows - outflows
3
Q
closing balance for one month is
A
the closing balance for one month is the opening for the next
4
Q
what does a cashflow statement show
A
- flow of money in and out of a business
- shows the money coming in (cash inflows) - sales of goods and services
- money leaving the business (cash outflows) - paying for stock expenses, machinery, dividend and loans
5
Q
what is the difference between the cash inflows and cash outflows
A
known as the net cashflows
6
Q
A
