BTEC First Diploma in Business
Unit 3 Investigating Financial Control
Introduction:
In this assignment i will prepare an annual cash flow forecast using monthly datas and analyse the implications of regular and irregular cash inflows and outflows for a business organisation. I will also evaluate how cash flows and financial recording systems can contribute to managing business finances.
Task 1 a
A Cash flow relates to the amount of money received and spent in the given period. Cash flow problems occur when the amount spent is greater than the amount received and Cash flow statement is normally produced in a little more detail than the summary statements. A cash flow statement or statement of cash flows is a financial statement that shows how the inflows and outflows affect the business. The cash flow statement is useful in determining the short-term usefulness of a business. It is good if you have to pay bills and Cash flow forecast means preparing a cash flow statement for the future with predicted inflows and outflows. This is always easier to do for an established business because managers have more experience and knowledge on which to base their decision.
In my opinion cash flow refers to the difference between the cash flowing into the business for example through sales revenue and the cash flowing out of the business for example bills and wages.
A cash flow statement is a Financial document, which shows the cash inflows and the cash outflows for our business over the past 12 months. It includes those months in which our business suffered a negative cash flow (where cash outflows were greater than cash inflows) and it will also shows us those months in which we had a positive cash flow (more cash inflows than cash outflows). It allows Down 2 U to prepare a cash flow forecast for the forthcoming year.
Unit 3 Investigating Financial Control
Introduction:
In this assignment i will prepare an annual cash flow forecast using monthly datas and analyse the implications of regular and irregular cash inflows and outflows for a business organisation. I will also evaluate how cash flows and financial recording systems can contribute to managing business finances.
Task 1 a
A Cash flow relates to the amount of money received and spent in the given period. Cash flow problems occur when the amount spent is greater than the amount received and Cash flow statement is normally produced in a little more detail than the summary statements. A cash flow statement or statement of cash flows is a financial statement that shows how the inflows and outflows affect the business. The cash flow statement is useful in determining the short-term usefulness of a business. It is good if you have to pay bills and Cash flow forecast means preparing a cash flow statement for the future with predicted inflows and outflows. This is always easier to do for an established business because managers have more experience and knowledge on which to base their decision.
In my opinion cash flow refers to the difference between the cash flowing into the business for example through sales revenue and the cash flowing out of the business for example bills and wages.
A cash flow statement is a Financial document, which shows the cash inflows and the cash outflows for our business over the past 12 months. It includes those months in which our business suffered a negative cash flow (where cash outflows were greater than cash inflows) and it will also shows us those months in which we had a positive cash flow (more cash inflows than cash outflows). It allows Down 2 U to prepare a cash flow forecast for the forthcoming year.
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Teacher Reviews
Here's what a teacher thought of this essay
This essay confuses cash flow with profit and loss. They are different and the reasons for this difference is referred to (seasonal, credit, irregular payments). There should be more discussion of how a business deals with negative cash flow (overdraft, change credit terms etc)
