Net Current Assets Flashcards
1
Q
Net currency assets
A
Money available in the business to find day to day expenditure
+Consider unnecessary costs
-Pressure is applied to customers for shorter credit terms
+cash flow can be managed effectively
- lower stocks amounts might not meet demands
2
Q
Sale of assets
A
Selling an item to get cash into the business
-amount sold might not be true reflection of value
- no interests rate
+reduces capital (money) tied up in the assets
-assets might need to be leased(rent) back
+ can get rid of assets that no longer need to be in the business
3
Q
Net cash flow
A
Inflow of cash compare to outflow
Inflow - outflow