Which of the following is an example of a cash in-flow for a business?

• payment to suppliers
• paying back a loan to a bank
• payment from debtors
• purchase of fixed assets

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

Which of the following is NOT a use of cash-flow forecasts?

• 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

Business cash flow forecasts are of use in all of the following situations except:

• calculating last year’s profit or loss
• finding out how much cash will be needed to start a business
• keeping informed about the liquidity of the business
• helping the manager to plan when to borrow money

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

• sell more goods on 4 months credit
• produce more goods
• ask customers to pay in cash and not sell goods on credit
• ask suppliers if the firm can pay for goods in cash

The monthly net cash flow for a business is calculated by:

• sales revenue - cost of goods sold
• total cash in - total cash out
• total cash out - total cash in
• total cash in - cost of goods sold

The amount of cash moving into and out of a business

• Cash Flow

• Net Worth

selling an asset would be an example of

• cash inflow

• cash outflow

Which is not a category of cash flow?

• Operating

• Investing

• Financing

• Current Assets

The following would appear in which section of the cash flow statement?

Cash payments for purchasing inventory

• Operating

• Investing

• Financing