NEW
Font size
WorksheetsUnit 5.2 Cash flow forecasting
Total questions: 20
Worksheet time: 11mins
A cash flow statement shows an overview of money flowing in and out of a company
True
False
What is the money available to pay for day to day operational costs called?
Cash
Working capital
Profit
All of the above
Assume a firm sells goods costing £40,000 for £55,000. It provides the customer
with 70% trade credit (i.e. the customer pays only 30% of the price as a down
payment). The profit earned is __________, and the cash received is _________.
£15,000, £12,000
£15,000, £16,500
£15,000, £28,000
£15,000, £55,000
The term _________ describes how efficiently an asset can be converted into
cash.
Liquidity
Solvency
Conversion rate
Working capital cycle
In a given cash flow forecast, the closing balance in June would become the ____________ of July.
Closing balance
Working capital
Net cash flow
Opening balance
Which of the following reduces a businesses cash flow?
Asking debtors for payment
Repaying an overdraft
Securing better trade credit terms from suppliers
selling an asset would be an example of
cash inflow
cash outflow
What is the formula used for a cash flow forecast?
[ Receipts - Payments = Net Cash Flow ] + Opening Balance = Closing Balance.
[ Receipts - Payments = Net Cash Flow ] - Opening Balance = Closing Balance.
