What is a cash-flow calendar?

• A. A tool that records budget estimates for monthly income and expenses to identify surplus or deficit situations
• B. A calendar of all bank deadlines
• C. A yearly tax calendar
• D. A schedule of loan maturities

Answer: (A)

A cash-flow calendar is a planning tool that tracks when money is expected to come in and go out, usually for monthly income and expenses, so you can see whether you’ll have a surplus or a deficit in each period. By laying out expected inflows (like salary, freelance money, or other income) next to outflows (rent, utilities, groceries, debt payments, and so on), you can forecast any gaps before they happen and plan how to cover them or adjust spending. This timing view helps you stay on top of liquidity, avoid overdrafts, and align spending with your financial goals.

The other calendars aren’t about tracking the month-to-month flow of cash. A calendar of bank deadlines focuses on deadlines for payments or transfers, a yearly tax calendar centers on tax deadlines, and a schedule of loan maturities lists when loans mature. None of those provide the ongoing, month-by-month picture of expected cash inflows and outflows to identify surpluses or deficits.