Steve Has Estimated the Cash Inflows and Outflows for His

question 72

Multiple Choice

Steve has estimated the cash inflows and outflows for his hardware store for next year. The report that he has prepared recapping these cash flows is called a:

• A) pro forma income statement.
• B) sales projection.
• C) cash budget.
• D) receivables analysis.
• E) credit analysis.

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Definitions:

Expenses With No Cash Outflows

Costs recognized in the accounting period that do not require an immediate cash outlay, such as depreciation.

Expenses and Losses

Outflows or the using up of assets as a result of the company's efforts to generate revenue, including losses from various sources.

No Cash Outflows

A situation or period during which a business or project does not expend cash.

Cash Receipts

Money received during a period, especially in relation to business transactions.