Ch.13 Cash Forecasting Flashcards
1
Q
Purpose
A
Predictive Forecasts - predict and project what will happen in the future.
Analytical Forecast - answer what if questions or to predict the financial impact of a given project
2
Q
Purpose of forecast
A
Managing Liquidity Controlling financial activities Meeting Strategic Objectives Budgeting Capital Managing Costs Managing Currency Exposure Complying with regulatory requirements.
3
Q
Forecasting Horizon
A
ST Forecasting - 1-30 days in lenght
Medium Term Forecast - 1-12 months in length
Long Term Forecasting - > One year
4
Q
Update Frequency
A
Static Forecasts - Updated monthly, but doesn’t change over time
Rolling Forecasts - Updates with new forecasted numbers monthly
