Cash and cash flow Reading

What does 'cash' refer to in a business context?

• Physical money in notes and coins

• Cash in the bank

• Both physical money and cash in the bank

• Only digital transactions

Which of the following is NOT a main cash payment a business makes?

• Payments to suppliers

• Payments to employees

• Investing in new equipment

• Overheads like rent and electricity

What can cause a business to have cash flow problems during rapid growth?

• Lack of customers

• Inability to keep up with cash being paid out

• High employee turnover

• Decreasing sales

What is the difference between cash and profit?

• Cash is the total revenue, profit is after costs are deducted

• Cash is only physical money, profit is digital

• Cash is the money in the bank, profit is the total revenue

• Cash and profit are the same

What is the formula for net cash flow?

• Net cash flow = cash inflows + cash outflows

• Net cash flow = cash inflows - cash outflows

• Net cash flow = cash outflows - cash inflows

• Net cash flow = cash inflows * cash outflows

What does a cash flow forecast help a business to do?

• Plan for the future

• Increase sales

• Reduce employee costs

• Avoid paying taxes