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WorksheetsIntro to accounting
Total questions: 15
Worksheet time: 5mins
Which of the following are true of cash budgets? (choose all that apply)
A budget is a financial plan for the future
They show total profit and loss
They help assess potential cash flow problems.
They show total profit and loss
All the money coming into the business, such as sales are?
Cash Available
Receipts
Payments
Opening balance
Cash left at the end of the month after all payments have been taken away from the business receipts is?
The opening balance
The total profit for the period
The owners drawnings
The closing balance
What is a cash shortage?
When a debtor short pays an invoice
When a business can’t pay its liabilities or expenses
When the owner has high drawings
What are some of the things a business can do to reduce cash shortages?
reducing the level of drawings or contributing additional capital
reducing the level of expenses or postponing the payment of expenses
postponing the purchase of additional assets or borrowing money externally
generating additional income or offering incentives to debtors to encourage payment
advertising to increase income through sale
What is a cash surplus?
When a business can’t pay its liabilities or expenses
When the wages are accounted for
The accounts receivable ledger
A cash budget may predict that an excess amount of cash will be available above and beyond the normal requirements of the business
What can be done with a cash surplus?
pay off some liabilities or invest internally through the purchase of non-current assets
withdraw some for personal use or invest the cash externally
expand the business
Make a reducing the level of drawings
A cash budget that spans 3 months is called a
A simple cash budget
Long term cash budget
Quarterly cash budget
A waste of time
The two main headings of a Cash budget are?
Cash Debit and Cash Credit
Cash Receipts and Cash Payments
Cash Receipts and Cash Credit
Accounts Payable and Accounts Receivable
In a quarterly budget, May's Closing Balance is the same as?
June's Closing Balance
May's Opening Balance
It is not the same as anything
June's Opening Balance
Which one of these would not help a business overcome a budget deficit?
Increase selling prices
Hire more staff
Spend less on purchases
Get a bank loan/overdraft
What is the Estimated Payments this month going to be if:
Rent $200
Wages $100
Electricity $50
Stock Purchases $50
$300
$350
$400
$500
You try to find a profit or loss for a cash budget?
True
False
Owners Drawings of Cash are?
Irrelevant
Cash Reciepts
Cash Payments
Performance Reports are?
A performance report compares budget targets to actual results
The profit reports this year
A set of financial reports the compart the YTD profit and loss.
