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WorksheetsCash Flow Forecasting
Total questions: 11
Worksheet time: 6mins
_________ is the money coming into a business
Net cash flow
Cash inflow
Cash outflow
Opening balance
_______ is the money going out of a business
Net cash flow
Cash inflow
Cash outflow
Closing balance
How do you calculate net cash flow?
Cash outflow - Cash inflow
Cash inflow + cash out flow
Cash inflow - Cash outflow
Cash inflow - opening balance
A cash flow forecast is an accurate representation of money coming in and out of the business
True
False
Is the following an example of positive cash flow or negative cash flow?
Positive
Negative
paying the rent would be an example of
cash inflow
cash outflow
What is the purpose of a cash flow forecast?
To calculate profit or loss
To estimate whether a business has enough cash to pay their bills
To find out when customers are going to pay their invoices
To see if the business will break even
Cash is not the same as profit. Why?
Cash may come from loans and investors, profit only comes from sales revenue
They are the same
Cash is used to pay the bills within a business
Cash flow stops a business from going bankrupt
Ideally, the net cash flow should be
positive
negative
Net cash flow + opening balance =
Cash outflows
Cash inflows
The opening balance of the next month
Closing balance
What is the net cash flow if the total inflows are £800 and the total outflows are £3,000?
-£2500
-£2200
£2200
£3800
