cash flow

A cash flow statement shows an overview of money flowing in and out of a company

• True

• False

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

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

If a cashflow forecast suggests that a firm will run out of cash, which would help the problem?

• purchase more fixed assets
• repay a bank loan
• pay suppliers immediately
• delay paying suppliers

Which of the following is true about cash flow?

• It is the same as profit
  
• It is different from profit
  
• It is the same as revenue
  

What is net cash flow?

• The difference between revenue and cost
• The difference between money in and money out
• The difference between assets and liabilities
  

What is the purpose of a cash flow forecast?

• To calculate profit or loss

• To find out whether a business has enough cash to pay their bills

• To find out when customers are going to pay their invoices

• To see if the business will break even

Cash Flow Statement is based upon
 

• Cash basis of accounting
• Accrual basis of accounting
• Credit basis of accounting 
• None of the above

Cash Inflows - Cash Outflows =

• Net Cash Flow

• Opening Balance

• Closing Balance

Cash is not the same as profit. Why?

• Cash may come from loans and investors, profit only comes from sales revenue

• They are the same

• Cash is used to pay the bills within a business

• Cash flow stops a business from going bankrupt