Chap 12&13: Finance and Ratios

The amount of money flowing in and out of a business or household is called

• Cashflow

• Overheads

• Budgeting

Security offered on the repayment of a loan is called (a)   -

The short term finance by means of selling the rights to collect payments from debtors is called:

• Factoring

• Discounting

• Accrued expenses

• Hire Purchases

Examine the cashflow forecast attached to this question. Identify the months that there is a deficit net cash balance

(a)  

Which of the following is not a way to deal with a cashflow deficit

• Increase Receipts

• Reduce Payments

• Seek short term finance

• Increase Payments

Businesses and households may seek an overdraft from the bank connected to their (a)   a/c

Money provide to a business for a specific purpose with no interest or cash repayment is a

• Grant

• Interest free loan

• Dividends

• Term loan

The long term source of finance in which a business sells an asset and then rents it back on a long-term basis is called:

• Debenture

• Sale and leaseback

• Venture capital

• State grant contract

The medium term finance in which a person or business buys an asset and pay back instalments but doesn't have full ownership until it is fully paid is called

• Hire purchase

• Leasing

• Asset ownership loans

• Term Loan

The ability of a company to pay its immediate debts as they fall due is called

• Liquidity

• Profitability

• Gearing