Cash Flow Forecasting Quiz

What is cash flow?

• The amount of cash a company has at a given time

• The total revenue of a company

• The difference between cash inflows and outflows

• The value of company assets

What does liquidation mean in the context of a business?

• Selling off assets to pay debts

• Investing in new projects

• Expanding the business operations

• Increasing cash reserves

What are examples of cash inflows for a business?

• Repaying loans

• Paying creditors

• Purchasing fixed assets

• Sales revenue from products

What are examples of cash outflows for a business?

• Investors putting more money into the business

• Sale of business assets

• Payment from debtors

• Purchasing goods and materials

What is the formula for calculating cash flow?

• Cash Inflow + Cash Outflow

• Cash Inflow - Cash Outflow

• Cash Inflow / Cash Outflow

• Cash Inflow x Cash Outflow

What is the most liquid asset a company owns?

• Inventory

• Accounts Receivable

• Equipment

• Cash

What does the cash flow cycle refer to?

• The time between hiring and firing employees

• The time between paying out cash and receiving cash

• The time between product development and launch

• The time between sales and profits

What is the purpose of working capital in relation to the cash flow cycle?

• To increase cash reserves

• To decrease cash flow

• To meet short-term financial obligations

• To speed up the cash flow cycle

What is the significance of cash for a business?

• To reduce taxes

• To acquire new companies

• To pay short-term obligations

• To invest in long-term projects

What happens if a company lacks cash to pay its debts?

• It reduces prices of products

• It goes into liquidation

• It expands its operations

• It increases marketing efforts