cash flow

Front

Which of the following is an example of a cash out-flow for a business? payments to creditors, sale of goods, payment from debtors, receiving a loan from the bank

Back

payments to creditors

Front

If a cashflow forecast suggests that a firm will run out of cash, which would help the problem? Options: purchase more fixed assets, repay a bank loan, pay suppliers immediately, delay paying suppliers

Back

delay paying suppliers

Front

Cash flow is a measurement of the debt of a company

Back

False

Front

Interest received from a bank is an example of what?

Back

Inflow

Front

If a business' total inflows are predicted to be £1500, total outflows are £700, a closing balance of £100, what is the net cash flow?

Back

£900

Front

Which solution would help a cash flow? Options: Pay creditors quickly, An overdraft, Offering customers longer credit terms, Reduce your cash inflows.

Back

An overdraft

Front

If a business is expanding quickly but does not have the cash to do so, this is known as what?

Back

Overtrading

Front

Which of the following is an example of a cash out-flow for a business? payments to creditors, sale of goods, payment from debtors, receiving a loan from the bank

Back

payments to creditors

Front

Which of the following is NOT a use of cash-flow forecasts?
Options:
They indicate how much cash is available for paying bills,
They show how much the bank needs to lend to stop insolvency,
They indicate whether the business is holding too much cash,
They indicate how much profit the business will make

Back

They indicate how much profit the business will make

Front

A firm is forecast to have a negative closing bank balance. Which would reduce the problem?

Back

ask customers to pay in cash and not sell goods on credit