Financial Records

A request for payment from the supplier

• Cheque
• Credit Note
• Invoice
• Purchase Order

Proof of purchase and payment

• Invoice
• Cheque
• Receipt
• Delivery Note

A payee on the cheque is:

• The person who's name appears on the check and is receiving the cheque
• The person writing the cheque 
• The bank
• Cheque number

Payroll is: 

• A list of a company's employees and the amount of money they are to be paid.
• A list of all customers and what they spent. 

Money received from a business investor would be an example of

• cash inflow

• cash outflow

paying the rent would be an example of

• cash inflow

• cash outflow

Ideally, the net cash flow should be

• positive

• negative

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

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