Level 2 Business B2

What is budgeting?

• The process of checking what is actually happening and comparing this to the plan

• The amount of money entering a business

• Planning future expenditure and revenue targets

• The amount of money leaving a business

What is budgetary control?

• The process of checking what is actually happening and comparing this to the plan

• The amount of money entering a business

• Planning future expenditure and revenue targets

• The amount of money leaving a business

What is the person in charge of monitoring a budget called?

• budget controller
• budget supervisor
• budget manager
• budget holder

What is cash inflow?

• The process of checking what is actually happening and comparing this to the plan

• The amount of money entering a business

• Planning future expenditure and revenue targets

• The amount of money leaving a business

What is cash outflow?

• The process of checking what is actually happening and comparing this to the plan

• The amount of money entering a business

• Planning future expenditure and revenue targets

• The amount of money leaving a business

What is an example of a cash inflow?

• dividends

• insurance

• staff wages

• loan from a bank

What is an example of a cash outflow?

• Property rental of shop

• Sales revenue
• Utilities

• Investments

What is net cash flow?

• The product of total cash inflows and total cash outflows.
• The sum of total cash inflows and total cash outflows.
• The average of total cash inflows and total cash outflows.
• The difference between total cash inflows and total cash outflows.

What do you get at the end of a cash flow forecast that is useful to businesses?

• Historical cash flow data
• Projected sales revenue
• Cash balance

• Cash statement

Is this a benefit or a risk?: The owner has warning that there is a long term problem

• benefit
• risk