Ch.13 Cash Forecasting Flashcards

1
Q

Purpose

A

Predictive Forecasts - predict and project what will happen in the future. Analytical Forecast - answer what if questions or to predict the financial impact of a given project

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2
Q

Purpose

A

Predictive Forecasts - predict and project what will happen in the future. Analytical Forecast - answer what if questions or to predict the financial impact of a given project

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3
Q

Purpose of forecast

A

Managing Liquidity Controlling financial activities Meeting Strategic Objectives Budgeting Capital Managing Costs Managing Currency Exposure Complying with regulatory requirements.

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4
Q

Forecasting Horizon

A

ST Forecasting - 1-30 days in lenght Medium Term Forecast - 1-12 months in length Long Term Forecasting - > One year

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5
Q

Update Frequency

A

Static Forecasts - Updated monthly, but doesn’t change over time Rolling Forecasts - Updates with new forecasted numbers monthly

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