Personal Business Finance Chapter 3 Cashflow

How do you calculate net cash flow?

• Balance brought forward + Cash Inflows

• Inflows - Outflows

• Total cash available - cash outflows

• None of the above

When does a business experience cash flow problems?

• When outflows are greater than inflows

• When inflows are greater than outflows

Which of these are methods that could be used to improve cash flow.

• Reducing costs by buying from a different supplier.

• Increasing its revenue by slightly raising its prices.

• Selling off some fixed assets.

• Paying back all of the refunds it owes customers

• Expanding into a new range of products.

Cash inflows and receipts mean the same thing

• true
• false

If inflows are 450, outflows are 120, and opening balance is 300, what will the closing balance be?

• 330
• 570
• 630
• -30

Mortgages are seen as what?

• Short term
• Long term

Net Cashflow =

• Income - Expense

• Asset - Liability

• Expense - Income

• Liability - Asset

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 one is not belongs to liability?

• Mobile Phone Bill

• Bank Loan

• Bank Balance

• Owed To Friends

Which ONE of the following relates to the ability of a business to pay its debts as they fall due?

• growth

• liquidity

• efficiency

• profitability