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WorksheetsCASH FLOW
Total questions: 10
Worksheet time: 5mins
Why is the cash flow important?
To know the available cash to pay
To know if the business is being efficient with its cash
To avoid insolvency
All are correct
Which one is the working capital formula?
Working capital = cash received - cash spent.
Working capital = current assets - current liabilities.
Working capital = operating cash flow - capital expenditures.
Why is the cash flow forecast important?
To know if the business is holding too much cash that could be used in a more profitable way.
To know how much money ask the bank for.
To help the manger to know the available cash to pay/purchase.
All the above.
Which one of these is NOT a type of activity presented on the statement of cash flows?
Producing.
Investing.
Operating.
Financing.
What means "cash flow as a liquid asset"?
That it assess a company's profitability.
That is immediately available for spending on goods and services.
That it includes all purchases of capital assets and investments in other business ventures.
That it represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
Which of these is NOT a goal of the cash flow forecast?
Start up a business
Run an existing business
Be 100% accurate
Keep the bank informed
Which one of the following ISN’T a way of cash outflow?
Purchasing goods & services
Paying wages, salaries and expenses
Paying creditors
Borrowing money from external sources
How is it called when a Business runs out of cash?
Inflow
Insolvency
Insufficiency
Inaccuracy
Which of these ISN’T a way of holding working capital?
Cash
A company car
Debtors
Inventories
Which of the following ISN'T a cash flow problem?
Higher cash inflow than cash outflow
Sudden fall in sales
Unforeseen expenses
Debtors payback period is too long
