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GCSE Business · key term
The cash balance at the end of a period, calculated as opening balance plus net cash flow.
Used by AQA, Edexcel and OCR
Paper 1, Paper 2
The cash position at the end of a period, calculated by adding net cash flow to the opening balance.
Revise: Cash Flow ForecastingManagers then total each month’s inflows and outflows, calculate the change in cash and work out the closing balance. That closing balance becomes the next month’s opening balance.
Keep net cash flow separate from the closing balance: one measures the change during the month; the other shows the cash position at the end.
Carry each closing balance forward as the next month’s opening balance, including any minus sign. Brackets around a figure can indicate a negative value.
In a cash flow forecast, include loans received as inflows and loan repayments as outflows. Carry each closing balance forward as the next opening balance.
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Specification 1.3.3 · Paper 1
Revise: Cash and Cash-FlowWith £500 available at the start, the closing balance is £500 + £60 = £560.
Paper 2
The cash balance at the end of a time period: .
Revise: Completing Cash Flow ForecastsThe closing balance tells us how much cash is expected to remain at the end, taking account of the cash available at the start.