Topic Four, Part 8 - Cashflow Flashcards
1
Q
What is cashflow?
A
the movement of money into and out of a business’ bank account
2
Q
What are inflows?
A
money received by the business
3
Q
What are outflows?
A
money paid out by the business
4
Q
What are some reasons for cashflow?
A
- Plan for any forecasted negative cashflow
- Help a business set prices
- Used by stakeholders
5
Q
What is net cash flow?
A
The difference between inflows and outflows
6
Q
What is Positive net cash flow?
A
Inflows are greater than out flows
7
Q
What is Negative net cash flow?
A
Outflows greater than inflows
8
Q
What is Cash Balance?
A
Amount of money in a business’ account
9
Q
What are regular inflows?
A
Predictable income
10
Q
What are irregular inflows?
A
Inflows which are more sporadic
11
Q
What are regular outflows?
A
payments made consistently
12
Q
What are irregular outflows?
A
Payments which are more sporadic
