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- 1. Multiple Choice
The amount of cash moving into and out of a business
Cash Flow
Net Worth
- 2. Multiple Choice
Money received from a business investor would be an example of
cash inflow
cash outflow
- 3. Multiple Choice
selling an asset would be an example of
cash inflow
cash outflow
- 4. Multiple Choice
paying the rent would be an example of
cash inflow
cash outflow
- 5. Multiple Choice
purchasing an asset would be an example of
cash inflow
cash outflow
- 6. Multiple Choice
Ideally, the net cash flow should be
positive
negative
- 7. Multiple Choice
One way that a firm could increase the amount of cash it has on hand is to reduce ____________
Credit
Outflows
Inflows
Insolvency
- 8. Multiple Choice
Why is this firm's level of cash increasing?
There is more cash inflow compared to outflows
There is less cash inflow compared to outflows
The firm is profitable
The firm is unprofitable
- 9. Multiple ChoiceIf a company sells 400 units of their product at an average price of $15 per unit, what is their total revenue?$6,000$4,500$4,000$7,500
- 10. Multiple ChoiceA firm produces 500 units at a total cost of $2,000. What is their average total cost of production?$4 per unit$5 per unit$3 per unit$2 per unit
- 11. Multiple ChoiceThe total cost for a company is $50. If the total variable cost is $20, then what is the total fixed cost for the company?$20$30$40$10
- 12. 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
- 13. Multiple ChoiceWhich of the following is true about cash flow?It is the same as profitIt is different from profitIt is the same as revenue
- 14. Multiple Choice
What is the purpose of a cash flow forecast?
To calculate profit or loss
To find out whether a business has enough cash to pay their bills
To find out when customers are going to pay their invoices
To see if the business will break even
- 15. 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
- 16. 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
- 17. 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
- 18. Multiple Choice
Government Grants
Cash Inflow
Cash Outflow
- 19. Multiple Choice
Paying for raw materials for your product
Cash Inflow
Cash Outflow
- 20. Multiple Choice
Receiving cash from a bank loan
Cash Inflow
Cash Outflow
- 21. Multiple Choice
Buying Machinery
Cash Inflow
Cash Outflow
- 22. Multiple Choice
Which one of the following ISN’T a way of cash outflow?
Purchasing goods & services
Paying wages, salaries and expenses
Paying creditors
Borrowing money from external sources
- 23. Multiple ChoiceWhat is a long term way to improve cash inflow?Take out a loanTake out an overdraftUse a factoring service
- 24. Multiple Choice
Grants usually come from
Big businesses
Governments
Loans
Small Businesses
- 25. Multiple Choice
Leasing or hire purchase you own the item immediately
True
False
- 26. Multiple Choice
Overdrafts are used for short term finance
True
False
Both
- 27. Multiple Choice
Which 2 examples are internal finance
Sales of assets
Grants
Retained profits
leasing
- 28. 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
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