Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

5 Cards in this Set

  • Front
  • Back

Cash flow

The flow of money in and out of the business

Flows in; revenue, payments by debtors, loans, interest payments

Flows out; wages, stock replenishment, payments to creditors, loan repayments

Cash flow cycle

Cash into the business > used for raw materials > products made > goods and services sold for cash (repeat)

Net cash flow (net monthly balance)

Inflow - outflow

Problems with cashlow forecasts

- Estimates of costs may be wrong

- start up companies may lack experience

- doesn't account for changes in the economy I.e. unemployment rates, brexit

- doesn't account for fashion and fads

Ways to improve cashflow

- increase sales

- reduce costs

- overdraft

- loan

- trade credit

- sell/lease back assets