Cash flow Flashcards
(12 cards)
Define Cash flow
The amount of cash that goes in and out of the business
Define Cash flow forecast
The predicted amount of money that comes into the business
Define Cash flow statement
The actual money that comes in and out of a business
Define Receipts/inflows
The money that comes into the business
Define Payments/outflows
The money that exits the business
Define opening balance
The money a business starts with monthly/yearly
Define closing balance
The money a business ends with monthly/yearly
What is the formula for NCF (Net Cash Flow) ?
Inflows - Outflows
What is the formula for Closing balance ?
Net cash flow + opening balance
How do you show negative numbers on a cash flow ?
(insert number)
What are Liquidity problems
When a company struggles to pay debts
Why is a cash flow important ?
Can show growth and where a business is going wrong
