cash flow

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

• payments to creditors
• sale of goods
• payment from debtors
• receiving a loan from the bank

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

• purchase more fixed assets
• repay a bank loan
• pay suppliers immediately
• delay paying suppliers

Cash flow is a measurement of the debt of a company

• True

• False

Interest received from a bank is an example of what?

• Expense

• Outflow

• Inflow

• None of the above

If a business' total inflows are predicted to be £1500, total outflows are £1000, a closing balance of £100, what is the net cash flow?

• £200

• £2,500

• £600

• £500

Which will one of the following solutions would help a cash flow?

• Pay creditors quickly

• An overdraft

• Offering customers longer credit terms.

• Reduce your cash inflows

If a business is expanding quickly but does not have the cash to do so, this is known as what?

• Credit terms have not been thought out.

• Too much stock

• Seasonality

• Overtrading

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

• payments to creditors
• sale of goods
• payment from debtors
• receiving a loan from the bank

Which of the following is NOT a use of cash-flow forecasts?

• They indicate how much cash is available for paying bills
• They show how much the bank needs to lend to stop insolvency
• They indicate whether the business is holding too much cash
• They indicate how much profit the business will make

A firm is forecast to have a negative closing bank balance. Which would reduce the problem?

• sell more goods on 4 months credit
• produce more goods
• ask customers to pay in cash and not sell goods on credit
• ask suppliers if the firm can pay for goods in cash