BTEC - C2 & 3 Cash Flow Forecast Quiz

What is a cash flow forecast?

• A report of past financial performance

• A prediction of future cash inflows and outflows

• A summary of assets and liabilities

• A list of all expenses

Which of the following is considered an inflow in a cash flow forecast?

• Rent payments

• Utility bills

• Sales revenue

• Loan repayments

What is the purpose of a cash flow forecast?

• To identify money coming in and going out of the enterprise over time

• To calculate profit margins

• To determine tax liabilities

• To assess employee performance

What does a cash flow forecast help determine?

• The impact of timings of inflows and outflows

• The total assets of a business

• The market share of a company

• The number of employees needed

What is the difference between forecasted and actual cash flows?

• Forecasted cash flows are predictions, while actual cash flows are real figures

• Forecasted cash flows are always higher than actual cash flows

• Forecasted cash flows are based on past data, while actual cash flows are future estimates

Which of the following is an outflow in a cash flow forecast?

• Sales revenue

• Loan receipts

• Supplier payments

• Interest earned

What is a net inflow?

• When total inflows exceed total outflows

• When total outflows exceed total inflows

• When inflows and outflows are equal

• When there are no inflows

What is a net outflow?

• When total inflows exceed total outflows

• When total outflows exceed total inflows

• When inflows and outflows are equal

• When there are no outflows

What is the opening balance in a cash flow forecast?

• The amount of cash at the start of the period

• The amount of cash at the end of the period

• The total inflows during the period

• The total outflows during the period

What is the closing balance in a cash flow forecast?

• The amount of cash at the start of the period

• The amount of cash at the end of the period

• The total inflows during the period

• The total outflows during the period