Making a profit guarantees that a business will always have the cash available to pay its bills.

The term Cash Flow refers to the money coming in and going out of a business.

Decreasing selling prices will most likely result in an increase to your cash flow.

A formal record used by many businesses to record their cash receipts is called the Cash Receipts Journal.

The special fund set up to handle small cash expenditures is called the Extra Cash Fund.

The starting point of monitoring and controlling cash begins with good record keeping.

A record needed to prepare your bank reconciliation is the Purchases Journal.

A listing of all the checks that have not been processed by the bank is called the Outstanding Checks Listing.

Small businesses don't have any need for Internal Controls.

A Cash Forecast helps to identify when cash is expected to be received and also when it must be spent.

Since nobody can predict the future, it's a useless exercise to prepare a Cash Forecast.

A computer, along with good software, provides a business with the tools that aid in cash forecasting, bookkeeping, payroll, and document processing.

Probably, the most important estimate needed for preparing a Cash Forecast is your Estimated Sales.

Deposits In Transit are deposits made by a business that have not yet been posted to your bank account by the bank.

A Bank Reconciliation is used to prove the accuracy of your cash balance(s) recorded in your books.

The Listing Of Outstanding Checks is a listing of the checks not yet written and that are locked up for safe keeping.

Internal Controls are the policies, activities, and safeguards that provide reasonable assurance that things are going as planned.

Much of the information needed to use as a starting point for your Cash Projection Estimates is provided in your actual Financial Statements.

Much of the information needed to use as a starting point for your Cash Projection Estimates is provided in your actual Financial Statements.

When possible, it's a good policy to not have the same employee responsible for receiving the cash and also recording the cash.