E1 - Cash Inflow Forecasts Flashcards
1
Q
Explain cash sales as an inflow.
A
It’s the sales made in cash or by card that are received by the seller at the time of purchase or delivery.
2
Q
Explain credit sales as an inflow.
A
It’s when the buyer is given a period of time after a sale is made to make the payment.
3
Q
Explain capital introduced as an inflow.
A
It’s when a business owner invests their personal money, stock or assets into the business.
4
Q
Explain sale of assets as an inflow.
A
It’s the selling of assets for cash in order to increase inflows to the business.
5
Q
Explain bank interest received as an inflow.
A
It’s when the business deposits its funds in the bank and receive interest as a % of the amount deposited.
