Chapter 6 Managing Funds And Cash Flow

Question 1

What is cash flow

Answer 1

Cash flow is the movement of cash within an enterprise.

Question 2

What is cash flow

Answer 2

Cash flow is the movement of cash within an enterprise.

Question 3

What is cash flow cycle

Answer 3

Cash flow cycle shows the use of cash in production until it comes back to the enterprise from sales of commodities.

Question 4

What is liquidity

Answer 4

Liquidity is the availability of cash in an enterprise to pay for its business transactions.

Question 5

What is cash inflow

Answer 5

Cash inflow is the sum of money coming into an enterprise over a given period oftime.

Question 6

What is cash outflow

Answer 6

Cash outflow is the sum of money going out of an enterprise over a given period of time.

Question 7

What is net cash flow

Answer 7

Net cash flow refers to the difference between total cash inflow and cash outflow over a given period oftime.

Question 8

What is a cash flow forecast

Answer 8

A cash flow forecast is an estimate of future monthly cash inflows and cash outflows over a given period oftime.