Which term refers to payments that are made by a business resulting in cash flowing out?

The term that refers to payments made by a business that result in cash flowing out is cash outflows. This concept is central to understanding a business's financial health. Cash outflows typically include expenses such as salaries, rent, utilities, and purchases of inventory or equipment. Tracking cash outflows helps businesses manage their expenses and ensure that they do not overspend relative to their cash inflows, which are the funds coming into the business from sales and other sources. Understanding cash outflows is crucial for maintaining liquidity and overall financial stability.

The other terms, while related to financial transactions, do not describe cash leaving the business. Cash inflows refer to the money coming into the business, cash purchases highlight a specific type of transaction that involves immediate cash payment, and cash forecasts are projections of future cash flows, both incoming and outgoing. Thus, cash outflows is the most accurate descriptor for payments that lead to cash exiting a business.