Understanding Cash Budgets Quiz

Which of the following is considered a cash outflow for a business?

• Revenue from sales

• Payment of salaries

• Interest received

• Loan received

If a company has cash inflows of £5,000 and cash outflows of £3,500, what is the net cash flow?

• £1,500

• £8,500

• £3,500

• £5,000

Which of the following is NOT a cash outflow?

• Purchase of inventory

• Payment of rent

• Depreciation expense

• Utility bills

A business has the following cash flows: £2,000 from sales, £500 paid for utilities, £300 received from interest, and £1,200 paid for wages. What is the net cash flow?

• £1,000

• £600

• £800

• £1,500

Which of the following transactions would increase cash outflows?

• Receiving a loan

• Paying dividends

• Selling equipment

• Collecting accounts receivable

Calculate the net cash flow if a company has cash inflows of £7,000 and cash outflows of £4,200.

• £2,800

• £11,200

• £4,200

• £7,000

Which of the following is an example of a cash outflow related to operating activities?

• Purchase of a new building

• Payment for raw materials

• Issuing shares

• Receiving a grant

A company has cash inflows of £10,000 and cash outflows of £12,000. What is the net cash flow?

• £2,000

• -£2,000

• £22,000

• £0

Which of the following would NOT be included in a cash budget?

• Cash sales

• Credit sales

• Cash purchases

• Loan repayments

If a business has cash inflows of £15,000 and cash outflows of £9,000, what is the net cash flow?

• £6,000

• £24,000

• £9,000

• £15,000