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Reporting period
the specific time frame a company uses to report its financial performance, such as income, expenses, and profit.
Depreciation
Represents reductions in the values of the firm’s equipment (although no actual cash leaves the company)
Cashflow statement
Shows cash inflows and outflows, money that actually comes in and goes out of a company in a particular period
Cash inflows
Money coming into a company, usually from activities like sales, investments or loans.
Cash outflows
Money going out of a company, such as payments for expenses, salaries, rent, buying equipment …
Cashflow problems
Problems that occur when a company doesn’t have enough cash to cover its expenses, even if it’s profitable. Causes
Credit terms
Conditions under which a seller extends credit to a buyer, like payment period, discounts for early payment. It also answers the question
Credit period
Amount of time a buyer has to pay for goods or services purchased on credit.
Net cashflow from operations
Money generated by the sales of the company’s goods or services minus money spent on supplies, staff salaries … in the period
Generated
Produced or created
Net cashflow from investment activities*
Inflows
Net cashflow from financing activities*
Inflows
Net cash position
Adding and subtracting the figures above*, the company calculates its Net cash position at the end of the year. In short, Net cash position refers to the amount of cash a company has after subtracting its debt.