What is the amount of cash left at the end of a period, computed as opening balance plus net cash flow?

• A. Opening balance
• B. Liquidity
• C. Closing balance
• D. Net cash flow

Answer: (C)

Ending cash balance is the cash left at the end of the period. It comes from opening balance plus net cash flow for the period (net cash flow equals inflows minus outflows). In other words, closing balance = opening balance + net cash flow. Opening balance describes the starting cash, liquidity is a measure of ability to meet short-term obligations, and net cash flow is the change during the period, not the amount left. So the term that names the amount left is the closing balance.