cash flow outflows

0.0(0)
studied byStudied by 0 people
0.0(0)
full-widthCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/5

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

6 Terms

1
New cards

what are outflows

are the money going out of the business for various purposes

2
New cards

what are examples of outflows

  • cash purchases

  • credit purchases

  • rent

  • rates

  • salaries

  • wages

  • utilities

  • purchase of assets

  • Value Added Tax (VAT)

  • bank interest paid

3
New cards

cash purchases

items purchased by a business and paid for at the time of purchase

4
New cards

credit purchases 

items purchased by a business and paid for at a later point in time

5
New cards

purchase of assets

non-current assets that a business is likely to keep for more than one year such as machinery and vehicles

6
New cards

value added tax

businesses that are VAT registered must pay VAT to HM Revenue & Customs (HMRC), and this should be shown in the cash flow forecast