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?

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

sell more goods on 4 months 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 - cost of goods sold

The closing bank balance is calculated by:

opening bank balance + net cash flow

opening bank balance + cash out-flow

opening bank balance + cash in-flow

For a future time period, a cash-flow forecast predicts :

The money flowing into and out of the business

The profit or loss a business will make

Which two are benefits to a business of having a positive cash flow?

It will help to prevent insolvency

It will help to secure business survival

The business will be guaranteed to make a profit

The business will no longer need to produce a cash-flow forecast

All employees in the business will be highly productive

Which two are ways a business could improve its cash flow position?

Negotiate discounted prices with suppliers

Reduce stock levels in the business

SGS Business 1.3.4 The Importance of Cash & Cash Flow

Authored by Richard Beels

Business

9th - 11th Grade

Used 80+ times

SGS Business 1.3.4 The Importance of Cash & Cash Flow

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View
Student View

19 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If a company sells 400 units of their product at an average price of $15 per unit, what is their total revenue?

$6,000

$4,500

$4,000

$7,500

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

INAC’s gross profit for July was:

$2,000

$1,500

$500

$2,500

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

INAC’s net cash flow for July was:

$2,000

$1,500

$500

$2,500

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which is the best explanation for a business running into cash-flow problems?

demanding quick payment from customers

allowing customers a long credit period

delaying payments to suppliers

producing goods when demanded by customers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Microsoft

or continue with

Facebook

Apple

Others

By signing up, you agree to our Terms of Service & Privacy Policy

Already have an account?

Similar Resources on Wayground

17 questions

Business Quiz

Quiz

•

10th Grade - University

15 questions

Office orientation & communication

Quiz

•

10th - 12th Grade

14 questions

HT Lesson 3.02

Quiz

•

9th - 12th Grade

15 questions

Shifts of the Demand Curve

Quiz

•

9th - 10th Grade

18 questions

OCR GCSE Business Studies Operations

Quiz

•

10th - 11th Grade

21 questions

Marketing & Advertising Assessment 1

Quiz

•

9th - 12th Grade

20 questions

Digital Media - Animate Introduction

Quiz

•

9th - 12th Grade

15 questions

Module 1.02 Vocab Quiz

Quiz

•

9th - 12th Grade

Popular Resources on Wayground

21 questions

Continents and Oceans

Quiz

•

6th Grade

20 questions

Parts of Speech

Quiz

•

5th Grade

16 questions

Subject & Predicate

Quiz

•

5th Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

6 questions

Rule of Law

Quiz

•

6th - 12th Grade

22 questions

Continents and Oceans

Quiz

•

5th Grade

10 questions

Movie Trivia

Quiz

•

KG - 2nd Grade

15 questions

Rounding Decimals

Quiz

•

5th Grade

Discover more resources for Business

18 questions

Business Functions and Strategy

Quiz

•

10th Grade

13 questions

BizInnovator Startup - Experience and Overview

Quiz

•

9th - 12th Grade

12 questions

Growth Mindset

Quiz

•

9th - 12th Grade

40 questions

Dave Ramsey Chapter 2 Review

Quiz

•

10th - 12th Grade

10 questions

Exploring the Essentials of Entrepreneurship

Interactive video

•

6th - 10th Grade

18 questions

Workplace Safety Quiz

Quiz

•

11th Grade

20 questions

20-1 Product Service Management

Presentation

•

10th Grade

12 questions

Time Management Lesson

Presentation

•

9th - 12th Grade

SGS Business 1.3.4 The Importance of Cash & Cash Flow

If a company sells 400 units of their product at an average price of $15 per unit, what is their total revenue?

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

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

INAC’s gross profit for July was:

INAC’s net cash flow for July was:

Which is the best explanation for a business running into cash-flow problems?

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

Which of the following is the value of x? ($000)

Which of the following is the value of y? ($000)

Which of the following is the value of z? ($000)

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Business