CAT / FIA FFM Classroom - Syllabus B1. Nature and sources of cash 1 / 4
a) Define cash, cash flow and funds.
b) Explain the importance of cash flow management and its impact on liquidity and company survival.
c) Outline the various sources and applications of finance.
(i) Regular revenue receipts and payments
(ii) Capital receipts and payments
(iii)Drawings or dividends and disbursements
(iv)Exceptional receipts and payments
d) Distinguish between the cash flow patterns of different types of organisations.
e) Explain the importance of cash flow for sustainable growth of such organisations.
f) Define “cash accounting” and “accruals accounting”.
g) Explain the difference between cash accounting and accruals accounting.
h) Reconcile cash flow to profit.