6.3 Cash and Cash Flow

Question 1

What is the opening balance?

Answer 1

The money that a business starts with

Question 2

Opening balance = closing balance __________

Answer 2

Of the previous period

Question 3

What is the closing balance?

Answer 3

The amount of money a business ends with after a period

Question 4

What is the equation for the closing balance?

Answer 4

Closing balance = net cash flow + opening balance