What does ''Opening Balance'' mean in a Cash Flow Forecast?

Answer 1

The balance of spendable cash at any one time on any one as listed date.

Answer 2

The opening balance is the amount of cash on hand and in the bank at the beginning of the forecasted accounting period. For example c. x ends up 2007 with $1000; the opening balance for 2008 would be $1000. If it's a new company, the opening balance would be 0.

Answer 3

Opening Balance, does not simply pertain to cash on hand.

An Opening Balance means the balance of ALL assets and liabilities (short and long term) on hand.

Usually a Balance Sheet is drawn with a vertical line with Debits (Dr) on the left and Credits (Cr) on the other side.

The totals on each side MUST equal each other, hence they must BALANCE.

Cash or physical items (tools, real estate, etc.) invested in a business are debited (added) to the Asset Accounts, and the total value is Credited (added) to the Owner Equity account.

It is hard to teach fundamental accounting here, but to add to, or subtract from an Asset account, you Debit or Credit it respectively.

To add to, or subtract from an Owners Equity Account, you CREDIT or DEBIT respectively. The same would be true for a liability account, and Owners Equity Accounts are treated by the business as a liability of the business owed to the Owners.

Hope this helps some. Good Luck

Answer 4

Opening balance means the amount of cash on hand and cash in bank account at the beginning of the financial period.

Answer 5

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