Cash Flow Forecasting

Cash Flow Forecasting

Assessment

Flashcard

Business

11th Grade

Easy

Created by

Jennifer Covel

Used 1+ times

FREE Resource

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28 questions

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1.

FLASHCARD QUESTION

Front

A cash flow forecast is ...

Back

A document showing the predicted flow of cash into and out of a business over a period of time, usually 12 months.

2.

FLASHCARD QUESTION

Front

Cash flow forecasting is important because ...

Back

It allows businesses to ensure they have a healthy cash balance to meet financial commitments, identify shortfalls, and make plans to prevent problems.

3.

FLASHCARD QUESTION

Front

Cash inflows are...

Back

Money coming into the business, including cash sales, credit sales, loans, capital, sale of assets, and bank interest received.

4.

FLASHCARD QUESTION

Front

Cash outflows are ...

Back

Money going out of the business, including cash purchases, credit purchases, purchase of assets, VAT, general expenses, bills, rent/rates, salaries, and wages.

5.

FLASHCARD QUESTION

Front

Net Cash Flow is...

Back

Net Cash Flow is the difference between Cash Inflows and Cash Outflows (Inflows – Outflows).

6.

FLASHCARD QUESTION

Front

The opening balance is ...

Back

The amount of cash expected to be in the bank at the start of the month. It comes from the closing balance of the previous month.

7.

FLASHCARD QUESTION

Front

The closing balance is ...

Back

The amount of cash expected to be in the bank at the end of the month. It is calculated by adding Net cash flow and opening balance.

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