TOPIC E KEYWORD CASHFLOW & BREAKEVEN Unit 3 Personal and Business finance
Key words Definition
Cash flow
1. Cash flow Money that goes into and out of a business on a regular basis.
2. Inflows Are the money coming into the business from various sources
3. Outflows Payments are the money going out of the business for various purposes
4. Net cash flow Is the difference between the money coming in and the money coming out
of your business for a specific period.
5. Positive net Means that the net balance of the cash flow statement of a business over a
cash flow given period is greater than zero.
6. Negative net Is when a business spends more money than it makes during a specific
cash flow period.
7. Surplus Describes the amount of an asset or resource that exceeds the portion
that's actively utilized. A surplus can refer to a host of different items,
including income, profits, capital, and goods
8. Deficit The amount by which a sum of money falls short of the required amount
9. Liquidity Measures a firm’s ability to meet short-term cash payments.
10. Insolvent When a firm is unable to meet short-term cash payments.
11. Solvent/ Is the ability of a company to meet its long-term debts and financial
solvency obligations.
12. Cash flow A document that shows the predicted flow of cash into and out of a
forecast business over a given period of time, normally 12 months.
13. Cash flow Is a financial statement that provides aggregate data regarding all cash
statement inflows a company receives from its ongoing operations and external
investment sources.
14. Receipts Are the money coming into the business from various sources
15. Payments Are the money going out of the business for various purposes
16. Opening Opening balance is how much money the business has at the start of the
balance month
Key words Definition
Cash flow
1. Cash flow Money that goes into and out of a business on a regular basis.
2. Inflows Are the money coming into the business from various sources
3. Outflows Payments are the money going out of the business for various purposes
4. Net cash flow Is the difference between the money coming in and the money coming out
of your business for a specific period.
5. Positive net Means that the net balance of the cash flow statement of a business over a
cash flow given period is greater than zero.
6. Negative net Is when a business spends more money than it makes during a specific
cash flow period.
7. Surplus Describes the amount of an asset or resource that exceeds the portion
that's actively utilized. A surplus can refer to a host of different items,
including income, profits, capital, and goods
8. Deficit The amount by which a sum of money falls short of the required amount
9. Liquidity Measures a firm’s ability to meet short-term cash payments.
10. Insolvent When a firm is unable to meet short-term cash payments.
11. Solvent/ Is the ability of a company to meet its long-term debts and financial
solvency obligations.
12. Cash flow A document that shows the predicted flow of cash into and out of a
forecast business over a given period of time, normally 12 months.
13. Cash flow Is a financial statement that provides aggregate data regarding all cash
statement inflows a company receives from its ongoing operations and external
investment sources.
14. Receipts Are the money coming into the business from various sources
15. Payments Are the money going out of the business for various purposes
16. Opening Opening balance is how much money the business has at the start of the
balance month
