IB Business Management 3.7
Terms in this set (17)
Money that flows in and out of a business over a given period of time.
The positive difference between sales revenue and total costs.
A situation where a business runs out of cash but many still be profitable.
The monies received by a business over a period of time.
The monies paid out by a business over a period of time.
One that is not able to pay its short-term debts.
A situation where all a firm's assets are sold off to pay any funds owing.
Working Capital Management
an assessment of the way the current assets and current liabilities are being administered.
Working Capital Cycle
the period of time between payment for goods supplied to a business and the business receiving cash from their sale.
the difference between current assets and current liabilities.
Opening Cash Balance
The cash that a business starts with every month. It is also the cash held by a business at the start of a trading year.
Total Cash Inflows
This is a summation of all cash inflows during a particular month.
Total Cash Outflows
This is a summation of all of the cash outflows during a particular month.
Net Cash Flow
This is the difference between the total cash inflows and the total cash outflows.
Closing Cash Balance
This is the estimated cash available at the end of the month. It is found by adding the net cash flow of one month to the opening balance of the same month.
Cash Flow Forecast
the future prediction of a firm's cash inflows and outflows over a given period of time.
The act of spending money on purchasing an asset with the expectations of future earnings.