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Nat 5 Cash Budgets

Total questions: 8

Worksheet time: 3mins

Name
Class
Date
1.

How can a business generate cash?

a)

Purchasing more stock

b)

Receiving a grant or a loan

c)

Selling products or services

d)

Selling assets

2.

What is a cash budget?

a)

A statement showing profits

b)

A list of receipts and payments over a period of time

c)

A list of profits and losses

d)

A budget of profits and cashflow items

3.

Causes of poor cashflow

a)

Reducing your wages

b)

Selling all your assets

c)

Giving customers too long to pay their debt

d)

Spending too much money on stock

4.

Which of the following cash flow solutions would reduce the cost of purchases?

a)

Increase advertising

b)

Applying for a bank loan

c)

Selling your assets

d)

Finding a cheaper supplier

5.

What term describes all the money coming into a business?

a)

Receipt

b)

Payment

c)

Deficit

d)

Profit

6.

Which of the following does NOT appear in a cash budget

a)

Opening Balance

b)

Profit

c)

Receipts

d)

Expenses

7.

Which of the following does NOT appear in a cash budget

a)

Opening Balance

b)

Profit

c)

Receipts

d)

Expenses

8.

Which statement is correct when calculating a cash budget?

a)

Opening Balance + Receipts

- Expenses

= Closing Balance

b)

Opening Balance - Receipts

+ Expenses

= Closing Balance

c)

Closing Balance

- Receipts

+ Expenses

= Opening Balance

d)

Closing Balance

+ Receipts

- Expenses

= Opening Balance