Cash Flow and Working Capital

A prediction of the amount of money in and out of the business over a period of time.

• Budget

• cash flow forecast

• closing balance

• opening balance

Money going out of the business

• Budget

• Closing balance

• Opening balance

• Cash outflow

Financial plan for a future period of time

• Budget

• Net cash flow

• Closing balance

• Opening balance

The difference between the inflows and the outflows over the month

• Cash inflow

• Cash outflow

• Net cash flow

• Opening balance

The amount of the money at the beginning of the month

• Budget

• Net Cash Flow

• Closing balance

• Opening Balance

The amount of the money left at the end of the month

• Budget

• Net cash flow

• Closing balance

• Opening balance

Money going coming into the business

• Closing balance

• Opening balance

• Cash inflow

• Cash outflow

Which one shows whether the business is overdrawn

• Net cash flow

• Opening balance

• Closing balance

• Budget

Who want to see a cash- flow forecast

• A Family member

• A lender

• A competitor

• A customer

Which of the following are ways to solve a cash-flow problem?

• Buy expensive machine rather than lease

• Arrange an overdraft from the bank

• Increase the level of stock held

• Hire more employee