Which of the following best describes cash?

• Notes

• Notes and coins

• Notes, coins and money in the bank

• Profit

Which of the following is an example of an overhead cost?

• Raw materials

• Rent

• Long term liabilities

• Cost of sales

What does a cash flow forecast measure?

• The actual cash that flows into and out of a business during an accounting period

• The actual cash that flows into a business during an accounting period

• The estimated cash that flows into and out of a business during an accounting period

What does a negative cash flow mean?

• The business has more money coming in than going out

• The business has more money going out than coming in

• The business is making a profit

Which of the following is an example of a cash inflow?

• The repayment of a loan

• Making a rent payment

• A new bank loan

What is the net cash flow if the total inflows are £800 and the total outflows are £3,000?

• −£,2500

• −£2,200

• 2200

How can a business improve its cash inflow?

• By taking out a bank loan

• By reducing its supplier costs

• By increasing its customers’ credit terms

How can cash outflow be improved?

• By negotiating longer supplier credit terms

• By taking out a loan

• By buying more equipment

Which best describes net cash flow?

• Cash in minus cash out

• Cash in plus cash out

• Cash in divided by cash out

What is the formula for closing balance?

• Net cash flow − net cash flow

• Inflow − outflow

• Net cash flow + opening balance