The _________________ the amount of time between buying materials (inputs) to receiving payments from the customer the higher the risk to a firm.

Sufficient working capital is needed to prevent a business from becoming insolvent.

Anyone who has bought from a business without payment (buying on credit) is known as a _____________.

Current liabilities are debts that have to be paid ________

The working capital situation of a firm can be improved by obtaining ______________ forms of _____________ term finance.

Obtaining too much external finance to improve working capital can make the problem worse.

Which of the following could be turned into cash the easiest or quickest?

Net working capital is the difference between current assets and current liabilities.

The goal of working capital management is to ensure adequate cash flow for operations.

A higher level of sales will require a higher level of working capital.

A prediction of the amount of money in and out of the business over a period of time.

Money going out of the business

Financial plan for a future period of time

The difference between the inflows and the outflows over the month

The amount of the money at the beginning of the month

The amount of the money left at the end of the month

Money going coming into the business

Which one shows whether the business is overdrawn

Who want to see a cash- flow forecast

Which of the following are ways to solve a cash-flow problem?

Which one is NOT the purpose of cash flow forecast?

The opening balance is not the same as the closing balance of the previous month

A bank is likely to lend a business money if it has a cash flow forecast

Lack of working capital is the main reason for cash problems

A profitable business can fail if it cannot solve its cash-flow problems