Cash Flow Quiz

What is the primary focus of cash flow management?

• Investment in new assets

• Balancing cash inflows and outflows

• Long-term financial planning

• Debt management

Which type of cash flow represents the cash generated or used by a company's core operating activities?

• Free Cash Flow (FCF)

• Net Cash Flow

• Operating Cash Flow (OCF)

• Financing Cash Flow (FCF)

What is a key indicator of a company's financial health?

• Positive cash flow

• High asset value

• Low operational costs

• Large workforce

What does cash flow forecasting involve?

• Predicting future expenses only

• Estimating future profits

• Predicting future cash inflows and outflows

• Tracking past financial transactions

What is a critical aspect of cash flow analysis?

• Identifying investment opportunities

• Identifying cash flow patterns

• Calculating employee benefits

• Forecasting stock prices

Which method is used to allocate the cost of assets over their useful lives?

• Depreciation and Amortisation

• Accruals and Deferred Revenue

• Impairment Charges

• Provisions and Reserves

What is an essential step in developing cash flow templates?

• Identifying Cash Flow Categories

• Reviewing market trends

• Conducting employee surveys

• Setting sales targets

What does effective cash flow management help a business avoid?

• Marketing risks

• Employee turnover

• Scenarios of liquidity shortage

• Technological advancements

What is the purpose of analysing seasonal variations in cash flow?

• To predict stock market trends

• To plan for financial stability during peak and off-peak seasons

• To calculate annual profits

• To assess employee performance

What is a primary goal of aligning a budget with business goals?

• To ensure legal compliance

• To support strategic objectives and priorities

• To reduce the workforce

• To increase media presence