Cash Flow

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

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

The closing bank balance is calculated by:

• opening bank balance + cash out-flow
• opening bank balance + cash in-flow
• opening bank balance + net cash flow
• net cash flow + gross profit

In a given cash flow forecast, the closing balance in June would become the ____________ of July.

• Closing balance

• Working capital

• Net cash flow

• Opening balance

Which one of the following is an example of an outflow? 

• Capital 
• Bank Loan
• Wages 
• Government Grant

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
  

How can cash outflows be improved?

• Buy extra equipment
  
• Lease out equipment
• Use a factoring service