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- 1. Multiple Choice
Which of the following is an example of a cash in-flow for a business?payment to supplierspaying back a loan to a bankpayment from debtorspurchase of fixed assets - 2. Multiple ChoiceWhich of the following is an example of a cash out-flow for a business?payments to creditorssale of goodspayment from debtorsreceiving a loan from the bank
- 3. Multiple ChoiceComplete this statement with the best option: ‘The longer the cash-flow cycle… .’the less cash the business will needthe lower will be the firm’s working capital needsthe less chance there is for the business to run out of cashthe more working capital and cash the business will need
- 4. Multiple ChoiceINAC’s gross profit for July was:$2,000$1,500$500$2,500
- 5. Multiple ChoiceINAC’s net cash flow for July was:$2,000$1,500$500$2,500
- 6. Multiple ChoiceWhich is the best explanation for a business running into cash-flow problems?demanding quick payment from customersallowing customers a long credit perioddelaying payments to suppliersproducing goods when demanded by customers
- 7. Multiple ChoiceWhich of the following is NOT a use of cash-flow forecasts?They indicate how much cash is available for paying billsThey show how much the bank needs to lend to stop insolvencyThey indicate whether the business is holding too much cashThey indicate how much profit the business will make
- 8. Multiple ChoiceWhich of the following is the value of x? ($000)$2$4$6($2)
- 9. Multiple ChoiceWhich of the following is the value of y? ($000)$4$6$9($9)
- 10. Multiple ChoiceWhich of the following is the value of z? ($000)$2$5$(15)$(5)
- 11. Multiple ChoiceBusiness cash flow forecasts are of use in all of the following situations except:calculating last year’s profit or lossfinding out how much cash will be needed to start a businesskeeping informed about the liquidity of the businesshelping the manager to plan when to borrow money
- 12. Multiple ChoiceA firm is forecast to have a negative closing bank balance. Which would reduce the problem?sell more goods on 4 months creditproduce more goodsask customers to pay in cash and not sell goods on creditask suppliers if the firm can pay for goods in cash
- 13. Multiple ChoiceIf a cashflow forecast suggests that a firm will run out of cash, which would help the problem?purchase more fixed assetsrepay a bank loanpay suppliers immediatelydelay paying suppliers
- 14. Multiple ChoiceThe monthly net cash flow for a business is calculated by:sales revenue - cost of goods soldtotal cash in - total cash outtotal cash out - total cash intotal cash in - cost of goods sold
- 15. Multiple ChoiceThe closing bank balance is calculated by:opening bank balance + cash out-flowopening bank balance + cash in-flowopening bank balance + net cash flownet cash flow + gross profit
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