Business Finance and Arithmetic — Entrepreneurship STD 11 Commerce — Question

Cash flow projection shows how cash is expected to flow in and out of a business. It is an en important tool for cash management and helps an entrepreneur to assess how much cash his/ her business will need.
Different terms Related to Cash Flow Projection are given below:

1. Cash: It refers to money and includes both currency and cheques. It is the life blood of every business and the most important asset for the operation of the business.
2. Cash Flow: It refers to the movement of money in and out of a business during a specific period of time. It is a record of company's inflows and outflows.
3. Cash Inflow: It is defined as the movement of money into a business. Cash sales and collection from debtors are prominent sources of cash inflow.
4. Cash Outflow: It is defined as the movement of money out of a business. Cash purchases, payment to creditors and meeting expenses lead to cash outflow.