3.3 Cash Flow Flashcards Preview

GCSE Business Studies Unit 1 > 3.3 Cash Flow > Flashcards

Flashcards in 3.3 Cash Flow Deck (8)
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1

What is Cash Flow?

Money going in and out of the business

2

Give the formula for Net Cash Flow

Net Cash Flow = Receipts - Payments

3

What is an Opening Balance?

The cash position of a business at the start of the month
(Also closing balance of previous month)

4

Give the formula for Closing Balance

Closing Balance = Net Cash Flow + Opening Balance
(It becomes the opening balance of next month)

5

What are Cash Flow Statements?

Financial Documents which analyse the past inflows and outflows of cash in a business

6

What do Cash Flow Forecasts help to predict?

When firms might face a liquidity problem

7

What is liquidity problem?

Lack of cash

8

What are the solutions to cash flow problems?

Increase sales
Reduce costs
Get a loan