Answers
Movement of money into and out of a business over time.
When closing balance is negative; outflows exceed inflows.
Inability to pay debts when they fall due; cash shortage.
Cash held at the end of a forecasting period.
Money received by a business, e.g., sales receipts and loans.
When closing balance is positive; more cash received than spent.
Cash held at the start of a forecasting period.
Difference between cash inflows and cash outflows in period.
Payments made by a business, such as wages, rent and supplies.
Prediction of future cash inflows and outflows for planning.
Physical money and bank funds available to a business immediately.