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WorksheetsS2 Cash Budgets
Total questions: 8
Worksheet time: 4mins
The money you start with is called the
Budget
Opening Balance
Cash
Closing Balance
A loan is included in which section of the cash budget?
The back of your wallet
Receipts
Payments
Opening Balance
Machinery purchases are put in which section?
Closing Balance
Opening Balance
Receipts
Payments
The formula for calculating the closing balance is
SUM
Opening balance - payments
Receipts - payments
Opening balance + receipts - payments
The purpose of a cash budget is
to forecast when there will be surplus cash
to forecast when there will be a deficit
to have something fun to do
to use your calculator
What is a deficit?
When you haven't completed a cash budget
When you can see that you will have extra money this month
When you forecast that you will have extra money to spend
When you forecast that you will be short of money
How can you make sure you will not have a deficit?
Reduce the amount of money spent
Ask the bank for a loan
Change the numbers in the budget so they give positive totals
Option 1 and 2
What could a business do with a surplus?
Borrow more money
Reduce their spending
Buy equipment
Pay for advertising
