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- 1. Multiple Choice
Which of the following are the correct terms for the cash that a business has at the start of the month?
Balance carried forward
Balance brought forward
Opening Balance
Total Cash Available
- 2. Multiple Choice
Which of the following are the correct terms for the cash a business has at the end of the month?
Closing balance
Cash outflows
Net cash flow
Balance carried forward
- 3. Multiple Choice
How do you calculate net cash flow?
Balance brought forward + Cash Inflows
Inflows - Outflows
Total cash available - cash outflows
None of the above
- 4. Multiple Choice
How do you calculate total cash available?
Inflows - Outflows
Net cash flow - outflows
Balance brought forward + cash inflows
Balance brought forward - cash inflows
- 5. Multiple Choice
How do you calculate balance carried forward?
Total cash available - cash outflows
Total cash available + cash outflows
Total cash available - cash inflows
Total cash available + cash inflows
- 6. Multiple Choice
How do you calculate closing balance?
Total cash available + cash outflows
Opening balance + Net cash flow
Opening balance - Net cash flow
None of the above
- 7. Multiple Choice
Which of the following are uses of cash flow forecasting?
The opportunity cost of spending time doing the forecast
It can help a business to get a bank loan
Inaccuracies caused by unexpected events
Being able to plan spending so you a can meet your debt obligations
- 8. Multiple Choice
Which of the following are limitations of cash flow forecasting?
It is only a forecast and so may change
A business will have to keep updating their forecast reflecting changes as they happen
A forecast can help a business plan
Can identify when spending should be delayed
- 9. Multiple Choice
Which of the following is the most accurate definition of opportunity cost?
Benefit of the next best alternative
Benefit of the next best alternative given up when a choice is made
The cost of making a decision
The resources that are used up when a decision is made
- 10. Multiple Choice
Cash flow forecasts can show...
Whether a business will make a profit
Whether a business has sufficient cash to meet their debt obligations
Whether a business will be able to repay a loan
Whether a business has enough shareholders
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