Question

Which component of financial plan summarizes all the projected sources of funds available to the venture to raise finance?

• A. Proforma investment decisions
• B. Proforma financing decisions
• C. Break-even point
• D. Proforma cash flow

Hint:

Remember, the proforma cash flow summarizes all projected sources of funds and is crucial when raising finance.

Answer 1

The Correct Option is D

The proforma cash flow is the financial document that summarizes all the projected sources of funds and helps in understanding how funds will flow into and out of the business during a specified period. This is the essential component of a financial plan when raising finance.