Cash Flow - Week 7

Money received from a business investor would be an example of

• cash inflow

• cash outflow

selling an asset would be an example of

• cash inflow

• cash outflow

paying the rent would be an example of

• cash inflow

• cash outflow

purchasing an asset would be an example of

• cash inflow

• cash outflow

Ideally, the net cash flow should be

• positive

• negative

Which of the following is an example of a cash in-flow for a business?

• payment to suppliers

• payment from debtors

• paying back a loan to a bank

• purchase of fixed assets

The monthly net cash flow for a business is calculated by:

• sales revenue - cost of goods sold

• total cash out - total cash in

• total cash in - total cash out

• total cash in - cost of goods sold

The closing bank balance is calculated by:

• opening bank balance + net cash flow

• opening bank balance + cash out-flow

• opening bank balance + cash in-flow

• net cash flow + gross profit

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

• Closing balance

• Net cash flow

• Working capital

• Opening balance

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

• True

• False