Financial Planning for Organisations Quiz

What is cash flow?

• The movement of money into and out of an organisation

• The amount of money saved by an organisation

• The total profit of an organisation

• The number of employees in an organisation

What is a cash flow forecast?

• A list of all employees in an organisation

• A report on past financial performance

• A plan for future marketing strategies

• A financial plan showing expected income and expenditure

What does a balanced cash flow forecast mean?

• Planned income exactly equals planned expenditure

• There is no planned income or expenditure

• Planned expenditure is greater than planned income

• Planned income is greater than planned expenditure

What is a short-term source of finance?

• Mortgage

• Venture capital

• Share capital

• Bank overdraft

What is the purpose of a cash flow forecast?

• To predict future cash flow problems

• To increase product prices

• To hire new employees

• To reduce the number of creditors

What is a medium-term need for an organisation?

• Premises

• Vehicles

• Raw materials

• Wages for staff

What is a long-term source of finance?

• Accrued expenses

• Trade creditors

• Hire purchase

• Mortgage

What is the consequence of not managing cash flow?

• Better market reputation

• Increased borrowing costs

• Higher employee satisfaction

• More product sales

What is the matching principle in finance?

• Matching expenses with income

• Matching short-, medium-, and long-term needs with appropriate finance

• Matching product prices with competitor prices

• Matching employee skills with job roles

What is a grant?

• A form of venture capital

• A loan that must be repaid with interest

• Money provided by the government that does not need to be repaid

• A type of bank overdraft