Cash Runway

By PRETTY BOOKS ON February 9, 2021
Metaphorical definitions of complex accounting terms.

The accounting language is filled with highly technical words and phrases that describe the highly technical job functions of an accountant. The ACCRUED DICTIONARY is a collection of common terms accountants use broken down into easy-to-understand metaphors, jokes, and whimsy. The dictionary cuts through the technical jargon and gives you a metaphorical perspective at what these words mean

Cash Runway

Noun. [kash•ruhn-wey]
  1. Accrued Dictionary definition: An earthquake detection system that monitors seismic activity within the business to predict any upcoming earthquakes. Owners can use the detection system to take action and prepare for any predicted earthquakes in the immediate future. While the tool might be absolutely necessary for businesses in a seismic zone, it’s an important everyday tool to have just in case.

     //There’s an earthquake reported on my cash runway, but I have enough to time to make sales and avoid it. 

  1. Textbook definition: The amount of time you can continue to operate if you don’t have any money coming in. Let’s say you have $60,000 in the bank and it costs you $10,000 just to operate, you have 6 months before it will run out.

     //Your cash runway says that without any new sales, you will be able to continue to operate for one year.

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The information provided in this post is for general informational and educational purposes only and is not a substitute for professional advice. Consult your financial, business, or tax advisor with respect to matters referenced in this post. Pretty Books assumes no liability for actions taken in reliance upon this information.
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