Cash equivalents Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insiginificant risk of changes in value .
Cash flow The inflows and outflows of cash through a business over a particular period.
Cash flow forecast Predictions of cash inflows and outflows over a future period.
Cash flow statement A summary of cash and bank transactions over a defined past period. When published it must be set out in accordance with the relevant accounting standard.
Liquidity The ability of a business to access enough cash and cash equivalents to pay debts as they
fall due.
Solvency The ability of a business to pay its debts as they fall due. The opposite is insolvency.
Working capital cycle The day-to-day movement of cash relating to inventories, trade receivables and trade
payables.
Elmer Tamayo is the author of myaccountinginfo.net who took-up his degree of "BS in Accountancy" major in accounting. A Web designer and blogger, His passion is Reading books, searching new tech update on the world wide web. Read More...
