Cashflow Definitions

Question 1

Cash inflow

Answer 1

cash flowing into or earned by a business(from sales, debtors or other activities)

Question 2

Cash outflow

Answer 2

cash flowing out or paid out by the business(for raw materials, creditors, electricity or other spending)

Question 3

Working capital

Answer 3

the funds available in the business to meet the needs of its day-to-day operations

Question 4

Opening balance

Answer 4

the amount of cash that the business has in the bank in the beginning of the month

Question 5

Closing balance

Answer 5

the amount of cash that the business has at the end of the month