3.7 - Cash Flow - Quiz 2

Anything of value

• Liquidity

• Liability

• Asset

• Inflow

An asset that can be used over and over

• Fixed Asset

• Current Asset

• Liability

• Current Liability

Something of value that a firm plans to use or spend in the short term future

• Tangible Asset

• Asset

• Fixed Asset

• Current Asset

Which of the following would NOT be an example of a fixed asset?

• Raw materials used in production

• A building where production occurs

• A delivery truck

• A copy machine

Something that the firm owes is called a...

• Creditors

• Sales

• Cash outflow

• Liability

Debt that has to be paid in the next 12 months (in the short term) is called:

• Bad Debt

• Current Liability

• Liability

• Cash outflow

Which of the following is NOT true of fixed assets

• They can be tangible (like a machine)

• They can be intangible (like a brand)

• They are more expensive than current assets

• They can be quickly turned into cash

Which of the following is NOT an example of a current asset:

• Stocks (inventory)

• Debt owed to the firm

• Cash on hand (retained profit)

• Manufacturing equipment

Which of the following is probably the most "liquid" asset?

• Land

• Car

• Cash

• Gold

Controlling and predicting cash flow to ensure a business can pay its debts and liabilities on time is called:

• Cash Flow Management

• Bankruptcy protection

• Liquidity

• Risk protection