WorksheetsCash Flow
Total questions: 12
Worksheet time: 6mins
Name
Class
Date
1.
Which of the following is an example of a cash in-flow for a business?
a)
payment to suppliers
b)
paying back a loan to a bank
c)
payment from debtors
d)
purchase of fixed assets
2.
Which of the following is an example of a cash out-flow for a business?
a)
payments to creditors
b)
sale of goods
c)
payment from debtors
d)
receiving a loan from the bank
3.
Complete this statement with the best option: ‘The longer the cash-flow cycle… .’
a)
the less cash the business will need
b)
the lower will be the firm’s working capital needs
c)
the less chance there is for the business to run out of cash
d)
the more working capital and cash the business will need
4.
INAC’s gross profit for July was:
a)
$2,000
b)
$1,500
c)
$500
d)
$2,500
5.
INAC’s net cash flow for July was:
a)
$2,000
b)
$1,500
c)
$500
d)
$2,500
6.
Which is the best explanation for a business running into cash-flow problems?
a)
demanding quick payment from customers
b)
allowing customers a long credit period
c)
delaying payments to suppliers
d)
producing goods when demanded by customers
7.
Which of the following is NOT a use of cash-flow forecasts?
a)
They indicate how much cash is available for paying bills
b)
They show how much the bank needs to lend to stop insolvency
c)
They indicate whether the business is holding too much cash
d)
They indicate how much profit the business will make
8.
Business cash flow forecasts are of use in all of the following situations except:
a)
calculating last year’s profit or loss
b)
finding out how much cash will be needed to start a business
c)
keeping informed about the liquidity of the business
d)
helping the manager to plan when to borrow money
9.
A firm is forecast to have a negative closing bank balance. Which would reduce the problem?
a)
sell more goods on 4 months credit
b)
produce more goods
c)
ask customers to pay in cash and not sell goods on credit
d)
ask suppliers if the firm can pay for goods in cash
10.
If a cashflow forecast suggests that a firm will run out of cash, which would help the problem?
a)
purchase more fixed assets
b)
repay a bank loan
c)
pay suppliers immediately
d)
delay paying suppliers
11.
The monthly net cash flow for a business is calculated by:
a)
sales revenue - cost of goods sold
b)
total cash in - total cash out
c)
total cash out - total cash in
d)
total cash in - cost of goods sold
12.
The closing bank balance is calculated by:
a)
opening bank balance + cash out-flow
b)
opening bank balance + cash in-flow
c)
opening bank balance + net cash flow
d)
net cash flow + gross profit
100 %
