Cashflow Forecasting

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

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

How do you calculate net cash flow?

• Balance brought forward + Cash Inflows

• Inflows - Outflows

• Total cash available - cash outflows

• None of the above

How do you calculate total cash available?

• Inflows - Outflows

• Net cash flow - outflows

• Balance brought forward + cash inflows

• Balance brought forward - cash inflows

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

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

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

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

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

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