Cash-flow meaning in English
Learn how to use Cash-flow correctly with Gymglish.
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Definition
cash-flow (or cash flow): relating to the coming and going of money from one's account, relating to what money one has available
cash-flow statement: a form or list showing money entering and leaving a bank account
Examples
- "Icarus : Cash flow problems, eh?"
- "So this letter here... "I'm afraid we are currently experiencing cash-flow problems and will not be able to pay for the shipment of perfumes until next month..."."
- "Future man : Cash flow problems."
Exercise 1
"Cash flow problems"
Now match the three types of financial reports with their definitions!
Now match the three types of financial reports with their definitions!
Shows if the company is making or losing money.
Shows the money immediately available to the company in the bank.
Shows the company's value: assets and liabilities.
"Cash flow problems"
Now match the three types of financial reports with their definitions!
Now match the three types of financial reports with their definitions!
Profit and loss account 1
Shows if the company is making or losing money.
Cash flow statement 2
Shows the money immediately available to the company in the bank.
Balance sheet 3
Shows the company's value: assets and liabilities.
1 Profit and loss account: This is correct. "The profit and loss account", also known as "the income statement", shows the company's earnings, expenses, and net profit over a period of time (usually quarterly or annually). "The income statement" basically shows how well the company has performed in its trading activities, and whether it is making or losing money!
1 Balance sheet: This is incorrect. The balance sheet doesn't show how much profit the company is making, but shows the company's net worth.
1 Cash flow statement: This is incorrect. The cash flow statement doesn't show how much profit the company is making, but shows movements of the company's liquid assets or cash.
2 Cash flow statement: This is correct. "The cash flow statement" shows movements of the company's liquid assets and indicates its ability to pay suppliers, staff and other creditors. In the conversation, the scientist says they are having "cash flow problems", which means they don't have enough free cash available. The term "cash flow" can be applied to both companies and individuals. Example: Paying for my car in three installments has helped my CASH FLOW.
2 Balance sheet: This is incorrect. The balance sheet doesn't show movements of the company's liquid assets, but shows the company's net worth.
2 Profit and loss account: This is incorrect. The profit and loss account doesn't show movements of the company's liquid assets, but shows the company's profits.
3 Balance sheet: This is correct. "The balance sheet" shows the company's value at a specific point in time, summarizing its assets, liabilities and net worth. The first side of the balance sheet shows the company's assets (equipment, software, buildings), while the other side shows liabilities (debt, financing methods, shareholder equity). The Balance Sheet is a "snapshot" in time of who owns what in the company.
3 Cash flow statement: This is incorrect. The cash flow statement doesn't show the company's net worth, but shows movements of the company's liquid assets or cash.
3 Profit and loss account: This is incorrect. The profit and loss account doesn't show the company's net worth, but shows the company's profits.
Exercise 2
Fill in the blanks below with financial terms from this scene.
This term describes the movement of money in and out of a business. "Because of our problems, we will have to reduce our expenses over the next few months."
This term describes a detailed, itemized request for payment. "After an order has been made on our website, we send an to the client with the price and item description."
This verb describes having a debt towards someone. "I the bank $3000 for a loan I took out in February."
This term describes the movement of money in and out of a business. "Because of our problems, we will have to reduce our expenses over the next few months."
This term describes a detailed, itemized request for payment. "After an order has been made on our website, we send an to the client with the price and item description."
This verb describes having a debt towards someone. "I the bank $3000 for a loan I took out in February."
Fill in the blanks below with financial terms from this scene.
This term describes the movement of money in and out of a business. "Because of our cash-flow 1 problems, we will have to reduce our expenses over the next few months."
This term describes a detailed, itemized request for payment. "After an order has been made on our website, we send an invoice 2 to the client with the price and item description."
This verb describes having a debt towards someone. "I owe 3 the bank $3000 for a loan I took out in February."
This term describes the movement of money in and out of a business. "Because of our cash-flow 1 problems, we will have to reduce our expenses over the next few months."
This term describes a detailed, itemized request for payment. "After an order has been made on our website, we send an invoice 2 to the client with the price and item description."
This verb describes having a debt towards someone. "I owe 3 the bank $3000 for a loan I took out in February."
1 cash-flow: "Cash flow" describes the movement of money in and out of a business. It is an indicator of the incoming money and outgoing expenses of the company. Cash flow can be measured over certain periods of activity (a year, a month, etc) and is good indicator of a company's financial health. In this scene, Icarus and Hannah read a letter from someone with "cash-flow" problems.
2 invoice: An "invoice" is a "bill" or "request for money", it is often a formal document detailing the type of product sold, as well as the number. In this scene, Hannah and Icarus read letters which include "invoices".
3 owe: To "owe someone (money)" is to be in debt to them: you should pay them this money. Example: "I still owe the bank $800 because of the loan I took out to buy my new car".
Exercise 3
"Cash flow problems"
Now match the three types of financial reports with their definitions!
Now match the three types of financial reports with their definitions!
Shows if the company is making or losing money.
Shows the money immediately available to the company in the bank.
Shows the company's value: assets and liabilities.
"Cash flow problems"
Now match the three types of financial reports with their definitions!
Now match the three types of financial reports with their definitions!
Profit and loss account 1
Shows if the company is making or losing money.
Cash flow statement 2
Shows the money immediately available to the company in the bank.
Balance sheet 3
Shows the company's value: assets and liabilities.
1 Profit and loss account: This is correct. "The profit and loss account", also known as "the income statement", shows the company's earnings, expenses, and net profit over a period of time (usually quarterly or annually). "The income statement" basically shows how well the company has performed in its trading activities, and whether it is making or losing money!
1 Balance sheet: This is incorrect. The balance sheet doesn't show how much profit the company is making, but shows the company's net worth.
1 Cash flow statement: This is incorrect. The cash flow statement doesn't show how much profit the company is making, but shows movements of the company's liquid assets or cash.
2 Cash flow statement: This is correct. "The cash flow statement" shows movements of the company's liquid assets and indicates its ability to pay suppliers, staff and other creditors. In the conversation, the scientist says they are having "cash flow problems", which means they don't have enough free cash available. The term "cash flow" can be applied to both companies and individuals. Example: Paying for my car in three installments has helped my CASH FLOW.
2 Balance sheet: This is incorrect. The balance sheet doesn't show movements of the company's liquid assets, but shows the company's net worth.
2 Profit and loss account: This is incorrect. The profit and loss account doesn't show movements of the company's liquid assets, but shows the company's profits.
3 Balance sheet: This is correct. "The balance sheet" shows the company's value at a specific point in time, summarizing its assets, liabilities and net worth. The first side of the balance sheet shows the company's assets (equipment, software, buildings), while the other side shows liabilities (debt, financing methods, shareholder equity). The Balance Sheet is a "snapshot" in time of who owns what in the company.
3 Cash flow statement: This is incorrect. The cash flow statement doesn't show the company's net worth, but shows movements of the company's liquid assets or cash.
3 Profit and loss account: This is incorrect. The profit and loss account doesn't show the company's net worth, but shows the company's profits.
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