Ch20_Business Studies_Cashflow

Choose to complete: "Cash is needed in a business to..."

• make profits.

• raise revenue.

• pay the bills.

• finance expenditures.

True or false: Cash-flow management involves making sure that enough cash is going out of the business to cover the cash that comes in.

• True.

• False

True or false: Cash is the same as profit.

• True.

• False.

What is a positive cash flow?

• Cash inflow is greater than cash outflow.

• Cash inflow is less than cash outflow.

True or false: A negative cash flow means a temporary cash shortage.

• True

• False

Complete: Net cash flow is cash inflow minus cash _______.

What shows how much cash a business expects to have at the end of each month or period?

• closing balance

• net cash flow

• opening balance

• total inflow