Cash Flow - W7 (2)

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

• payments to creditors

• payment from debtors

• sale of goods

• receiving a loan from the bank

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

Which of the following is the value of x?

• £2

• £6

• £4

• (£2)

Which of the following is the value of z?

• £2

• £(15)

• £5

• £(5)

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

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

• True

• False

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

• purchase more fixed assets

• pay suppliers immediately

• repay a bank loan

• delay paying suppliers

What is net cash flow?

• The difference between revenue and cost

• The difference between assets and liabilities

• The difference between money in and money out

What is the purpose of a cash flow forecast?

• To calculate profit or loss

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

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

• To see if the business will break even

What is net cash flow?

• The difference between revenue and cost

• The difference between assets and liabilities

• The difference between money in and money out