Unit 3 Review - Cash Flow Forecast

______________ is the money a business uses to pay for day-to-day operations.

• Working Capital

• Working Capital Cycle

Liquidity is a business' ability to pay for its short term profits.

• True

• False

The working capital cycle has four parts: buy inventory, produce goods, ______________ and cash.

• sell goods to buyers

• sell goods to competition

• sales and revenue

• sales and profits

Debt means the money _____________.

• sold

• borrowed

• bought

• paid

Inventory is ____________.

• a rent payment

• a list of goods/ products like materials

• a buyer's shopping list

Payment of bills, like electricity and internet connection

• Inflow

• Outflow

Wages/ Salaries is the money paid to __________.

• the business

• the workers

• the suppliers

A business has a positive net cash flow.

• Good liquidity

• Bad liquidity

A business has enough cash to pay its bills and debts.

• Good liquidity

• Bad liquidity

When a business' inflow is more than the outflow.

• negative cash flow

• net cash flow

• positive cash flow