cash flow - The movement of money into and out of a business' bank accounts, credit - The amount of money that a financial institution or supplier will allow a business to use, which it must pay back in the future at an agreed time., negative cash flow - When a business has more money going out (outgoings) than money coming in. In this situation, the business can not continue to pay its bills without borrowing money or raising additional capital., overdraft - An agreement with the bank to overspend on an account, positive cash flow - Is when more money comes into the business than goes out., profits - The amount of money made after all costs are deducted, Revenue - The income earned by a business over a period of time from selling its goods or services., Liquidity - The ability to meet day-to-day expenditure and pay debts., supplier - A business that provides goods or services to another business., Inflows - The money coming into the business from sales for example., Working Capital - Current assets less current liabilities, Net Cash Flow - The difference between cash inflows and cash outflows., Outflows - Money flowing out of the business [costs]., Opening Balance - The opening balance is the amount of money a business starts with at the beginning of the reporting period, usually the first day of the month:, Closing Balance - The closing balance is the amount of money the business has at the end of the reporting period, usually the last day of the month,

Cashflow Glossary

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