IB BM 3.7 Cash Flow

The continuous movement of money in and out of a business as a result of its operations is ...

• Profit and Loss

• Cash flow

• Break even

• Current ratio

The formula for working capital is:

• Current liabilities + current assets

• Current liabilities - current assets

• Current assets - current liabilities

• Current assets / current liabilities

Complete the formula: Cash flow =

Which is NOT an example of a current asset

• cash

• machinery

• stock

• debtors

Examples of current liabilities: tick all that apply

• IT equipment

• Production line salaries

• Costs of raw materials

• Overdraft

The opening balance of a start-up is __________.

The opening balance of a business in month 3 is:

• The opening balance of month 2

• The closing balance of month 2.

• Net cash flow

• Zero

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