Cash Budgeting Quiz

What is a cash budget?

• A list of all assets

• A summary of employee salaries

• A report of annual profits

• A document to manage cash flow

What does a cash budget help identify?

• Times of cash shortage

• Employee performance

• Market trends

• Competitor pricing

What is the opening balance?

• The profit at the end of the month

• The expenses for the month

• The total sales for the month

• The amount at the start of the month

What are receipts in a cash budget?

• Money coming into the business

• Money spent on advertising

• Employee wages

• Office supplies

What are payments in a cash budget?

• Revenue from sales

• Customer feedback

• Money going out of the business

• Interest earned

What is a closing balance?

• Projected annual profit

• Total monthly expenses

• Total monthly sales

• Cash left at the end of the month

What does a surplus indicate?

• Receipts are greater than payments

• Payments are greater than receipts

• No cash flow issues

• Expenses are equal to income

What does a deficit indicate?

• Receipts are greater than payments

• No cash flow issues

• Expenses are equal to income

• Payments are greater than receipts

What can a business do if a cash budget shows a shortage of cash?

• Hire more employees

• Reduce working hours

• Increase product prices

• Arrange extra funding

What is the purpose of regulating expenses in a cash budget?

• To highlight high expense months

• To increase sales

• To reduce employee turnover

• To improve customer satisfaction