Quiz 2

• Contingency Fund


  amount of money set aside to meet unexpected events requiring funding
• Timing


  very important in the management of cash flow
• Interest


  rate paid on loans
• Expenditures


  represented by expenses
• Income


  represented in cash flow as cash in
• Product Sales


  source of income
• Emergency fund


  contingency fund
• Operating expenses


  salaries/wages/rent
• Utilities 


  water/electricity/internet connection
• Budget


  itemized future expenses
• Negative cash flow


  when a company has more cash outflows than inflows, which can signal financial difficulties
• Positive cash flow


  when a company has more cash inflows than outflows, indicating financial health
• Free cash flow


  cash available after deducting capital expenditures often used to measure a company's financial flexibility
• cash flow statement


  financial report summarizing cash inflows and outflows within operating, investing, and financing
• Net cash flow


  the difference between total cash inflows and total cash outflows over a period
• Cash outflows


  money flowing out of the business, including payments of expenses, debts, or investments
• Cash inflows


  money flowing into business, such as revenue from sales or loans received