Business // Finance Cash Flow

Cash is the amount of money a business holds. Which of the following describes 'cash'?

• Notes
  
• Notes and coins
• Notes, coins and deposits in the bank

Which of the following is true about cash flow?

• It is the same as profit
  
• It is different from profit
  
• It is the same as revenue
  

Where does the main cash inflow for most businesses come from?

• Customers paying for products
• Interest received on loans
  
• Interest payments on a bank overdraft

What is net cash flow?

• The difference between revenue and cost
• The difference between money in and money out
• The difference between assets and liabilities
  

Which of the following is an example of a cash inflow?

• A new bank loan
  
• Payment of a gas bill
• Offering trade credit to a customer

If the opening balance is £5,000, total receipts are £4,000 and the closing balance is £3,000 then total payments are:

• £4,000
• £5,000
• £6,000

Which of the following hinders cash flow?

• Asking debtors for payment
• Repaying an overdraft
• Securing better trade credit terms from suppliers

What is a long term way to improve cash inflow?

• Take out a loan
  
• Take out an overdraft
• Use a factoring service

How can cash outflows be improved?

• Buy extra equipment
  
• Lease out equipment
• Use a factoring service
  

What does a positive cash flow mean?

• The business is making a loss
• The business is making either a profit or a loss
• The business is making a profit