Grade 11, 12 final term 2 revision

Shor term finance refers to money borrowed _____

• more than one year

• less than 5 years but more than 1

• One year or less

• 2years

capital finance provided by the customers

of the business

• False

• True

A reason that requires a business to fund is ______

• To reduce competition

• To decrease product quality

• To avoid paying taxes

• To cover operational costs and expand operations

Internal Sources of Finance is______

• Mortgages

• Bank overdraft

• selling assets

• credit cards

paying Rent is considered to be ______

• cash inflow

• cash outflow

• cash underflow

• cash low

Choose all the choices that represent short term finance.

• trade payables

• bank overdraft

• Mortgages

• loan capital

• credit cards

An Insolvent business is a business that _______

• have enough cash

• gain a lot of profits

• don't have enough cash

• losing money

opening Cash balance 5000 and net cash flow was positive 3000

• closing balance=2,000

• closing balance = 8,000

• closing balance =15,000

• closing balance=0

Why are cashflow forecasts important?

• identify cash shortage

• help business planning

• monitoring cash flow

• all are true

Some production costs remain the same whatever the level of output.

These are called ______.

• total cost

• variable cost

• fixed cost

• none of the above