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Note that your final mark will not be saved in the system.
Note that your final mark will not be saved in the system.
Business survival and cash flow Categorise
Target Level
C
Running Total
0
0%
Attempt
1 of 1
Click on an item, then click on a category to place it. Or, drag and drop the item into the correct category. Organise all items before clicking 'Check'.
USES OF CASH FLOW FORECASTS
LIMITATIONS OF CASH FLOW FORECASTS
Can be used to help organise overdraft to cover cash shortages
Mistakes can be made when calculating cash flow
Business can plan debt repayments
Risky for a business to make decisions based only on cash flow forecast
Can be used to secure a loan with the bank
Cash flow forecast is not about profit
Only shows the ability of the business to meet their short-term debts
Business can plan for the investment of surplus cash
Does not take account of possible shocks or uncertainty
Can be used to control and monitor the cash inflow and outflow of a business
No forecast is ever 100% accurate
Business can plan for cash shortage