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Cash Management

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

True or False. A business that makes good profits will always have enough cash to meet its commitments?

(a)  

2.

Which of the following items do not appear as a payment in a cash budget?

a)

payments of wages

b)

payments to suppliers (Accounts Payable)

c)

cash purchase of equipment

d)

depreciation on equipment

3.

During May, credit sales totalled $240 000. The business usually receives 80% of its debts in the first month after sale. How much cash is received in June from the credit sales in May?

a)

$192,000

b)

$48,000

c)

$240,000

d)

$190,000

4.

Which item is not included in the GST Collected section of the Statement of GST Payable to the ATO?

a)

rent revenue

b)

interest received from investments

c)

cash sales

d)

accounts receivable

5.

True or False. The cash budget is an attempt to predict future events for the business?

a)

True

b)

False

c)

Both

d)

None of the above

6.

Show the formula to calculate GST Credits received , if Cash Purchases for the month of May were $90,000?

(a)  

7.

Use the following information to calculate the Closing Cash position of the business. Opening cash balance $20,000Cr; estimated cash payments $90,000; estimated cash receipts $180,000.

a)

$110,000

b)

$70,000

c)

$200,000

d)

None of the above

8.

When cash receipts exceed cash payments on the cash budget, the resultant cash position is referred to as a

a)

shortage

b)

profit

c)

surplus

d)

deficit

9.

Which of the following items are included in the GST Credits Received section of the Statement of GST Payable to the ATO? 'Tick all relevant options'

a)

purchase of assets

b)

cash purchases

c)

payment of wages

d)

payment of drawings to owner

10.

Strategies to improve the cash receipts within the budget period could include?

a)

increase sales price on inventories sold

b)

tighten collection rates for payments received from accounts receivable

c)

source supplies from cheaper suppliers so you are spending less

d)

all of the above