Unit 3: Personal & Business Finance Outcome E

Cash flow forecasts investigate the future _______ and outflows of a business.

• Cash sale

• Credit sale

• Credit purchase

• Cash purchase

The more outflows a business has the more financially healthy they are.

• True

• False

Total cash available - total outflows =

• Opening Balance

• Closing Balance

What do brackets on a cash flow forecast show?

• Positive figure

• Important information

• Minus figure

• Profit

Opening balance + total inflows = total cash available

• True

• False

Which of these is an advantage of cash flow forecasts?

• Can form part of a business plan

• Helps identify potential problems

• takes time to create

• Looks fancy

Break-even occurs when...

• Total cash = total costs

• Total revenue = fixed costs

• Total revenue = variable cost per unit

• Total revenue = total costs

Sales in value and sales in volume are the same thing

• True

• False

What is the calculation for total revenue?

• Quantity sold x selling price

• Fixed costs + selling price

• Quantity sold - selling price

• Quantity sold + selling price

Fixed costs + _________= total costs

• Total variable costs

• variable

  costs

• CPU