Content Area E Flashcards
1
Q
Give 2 inflows
A
Cash sales
credit sales
Interest received
2
Q
Give 2 outflows
A
Rent
Salaries
Cash purchase
Vat
3
Q
closing balance formula
A
Total cash available - total outflows
4
Q
What is liquidity
A
A business ability to meet short term obligations
5
Q
Benefit of cash flow forecast
A
Identify shortfalls
6
Q
Solutions to improve a business’s cash flow
A
Overdraft arrangements- to help a business during low profit times
Negotiate terms with creditors
7
Q
Margin of safety formula
A
Actual sales - bep
8
Q
Name two points on a break even chart
A
Fixed cost
Total cost
9
Q
What is Break even chart used for
A
Planning
Monitoring
Controlling
Target setting
