cash-flow-forecasts Flashcards
(4 cards)
1
Q
what is a cash flow forecast
A
A prediction/estimate of the movement of
cash into and out of a business over a period of time
2
Q
why is a cash flow forecast useful
A
-identifies the timing of cash shortages and surpluses.
enhances the planning process
-helps identify where problems might occur and helps
to avoid the business being forced out of business
3
Q
what are some was to improve cash flow position
A
-improving revenue
-increasing prices
-reduce wage bill
4
Q
who has an interest in the business accounts
A
-Directors
-Workers
-Managers
-Shareholders
-Bank
