Paper 1 formulae - Cash Flow Family

Question 1

What is the equation for Total Inflows/ Total Income?

Answer 1

All inflows/ income added together for that month

Question 2

What is the equation for Total Outflows/ Total Expenditure?

Answer 2

All outflows/ expenditure added together for that month

Question 3

What is the equation for Net Cash Flow?

Answer 3

Total inflows/income – Total outflows/expenditure

Question 4

What is an Opening Balance?

Answer 4

Last month’s closing balance

Question 5

What is meant by the term “Closing Balance” and what is it’s equation?

Answer 5

Opening Balance + Net Cash Flow