Cash Flow and Financial Management Quiz

What is cash flow?

• The total profit of an organisation

• The amount of money saved by an organisation

• The movement of money into and out of an organisation

• The number of employees in an organisation

What is a consequence of poor cash flow?

• Higher employee satisfaction

• More investment opportunities

• Business failure

• Increased profits

What does 'on credit' mean?

• Paying for goods immediately

• Receiving goods now and paying later

• Buying goods with a discount

• Selling goods at a higher price

What is working capital?

• The total assets of a business

• The money available for day-to-day operations

• The profit made by a business

• The number of employees in a business

What is a cash flow forecast?

• A list of all employees

• A plan showing expected income and expenditure

• A document outlining company goals

• A report on past financial performance

What is a balanced cash flow forecast?

• When income is greater than expenditure

• When expenditure is greater than income

• When income equals expenditure

• When there is no income

What is a short-term source of finance?

• Bank overdraft

• Share capital

• Mortgage

• Venture capital

What is a medium-term source of finance?

• Crowdfunding

• Grants

• Leasing

• Trade creditors

What is a long-term source of finance?

• Invoice discounting

• Debentures

• Hire purchase

• Accrued expenses

What is the purpose of a cash flow forecast?

• To reduce company size

• To increase product prices

• To hire new employees

• To predict future cash flow problems