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- 1. 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
- 2. Multiple Choice
Which of the following are cash inflows?
Loan
Grant
Sales Revenue
Loan repayments
- 3. Multiple Choice
Which of the following are cash outflows?
Wages
Rent received
Insurance
Tax rebate
- 4. Multiple Choice
How do you calculate net cash flow?
Inflows - Outflows
Outflows - Inflows
Inflows + Outflows
Revenue - Total costs
- 5. Multiple Choice
What is opening balance?
Opening balance is what the business has left at the end of the month
Opening balance is the same as the opening balance from the previous month
Opening balance is the same as the closing balance from the previous month
Opening balance is the same as break even
- 6. Multiple Choice
How do you calculate closing balance?
Net cash flow + opening balance
Net cash flow - opening balance
(net cash flow / opening balance) x 100
Net cash flow x opening balance
- 7. Multiple Choice
If a business has total inflows of £250 and total outflows of £100, what is their net cash flow?
£150
£350
40%
0.4
- 8. Multiple Choice
If a business has net cash flow of £180 and opening balances of £120, what is their closing balance?
£180
£120
£300
£60
- 9. 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 - 10. Multiple Choice
A cash flow statement shows an overview of money flowing in and out of a company
True
False
- 11. 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
- 12. 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
- 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 Choice
The amount of cash moving into and out of a business
Cash Flow
Net Worth
- 15. Multiple Choice
paying the rent would be an example of
cash inflow
cash outflow
- 16. Multiple Choice
Ideally, the net cash flow should be
positive
negative
- 17. Multiple Choice
shows the movement of cash during a specific time frame that has already occured
cash flow statement
cash flow projection
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