Business chap 31 definition

  • Created by: ngaelsa
  • Created on: 28-03-17 14:09
Cash flow
The sum of cash payments to the business (inflows) less the sum of cash payments by the business (outflow)
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Cash-flow forecast
Estimate of a firm's future cash inflows and outflows
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Insolvent
when the business cannot meet its short-term debts
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Cash inflow
Cash payment received by the business (trade receivable, receiving loans from bank)
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Cash outflow
Cash payment made by the business (to pay supplier, labor costs)
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Net monthly cash-flow
Estimate the difference between monthly cash inflow and outflow
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Credit control
Monitoring of debts to ensure that credit periods are not exceeded
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Bad debt
Unpaid customer's bill that are now very unlikely to be ever paid
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Over trading
Expanding a business rapidly without obtaining all of the necessary finance so that a cash-flow shortage develops
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Creditors
Suppliers who agreed to supply product on credit and have not been paid yet
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Opening balance
Cash held by the business at the start of the month
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Closing balance
Cash held by the business at the end of the month becomes next month's opening balance
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Other cards in this set

Card 2

Front

Estimate of a firm's future cash inflows and outflows

Back

Cash-flow forecast

Card 3

Front

when the business cannot meet its short-term debts

Back

Preview of the back of card 3

Card 4

Front

Cash payment received by the business (trade receivable, receiving loans from bank)

Back

Preview of the back of card 4

Card 5

Front

Cash payment made by the business (to pay supplier, labor costs)

Back

Preview of the back of card 5
View more cards

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