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WorksheetsCash flow forecast
Total questions: 69
Worksheet time: 2hrs 44mins
What is the formula used for a cash flow forecast?
[ Receipts - Payments = Net Cash Flow ] + Opening Balance = Closing Balance.
[ Receipts - Payments = Net Cash Flow ] - Opening Balance = Closing Balance.
A cash flow statement shows an overview of money flowing in and out of a company
True
False
Which of the following is the value of x?
£2
£4
£6
(£2)
Which of the following is the value of y?
£4
£6
£9
(£9)
Which of the following is the value of z?
£2
£5
£(15)
£(5)
What is the money available to pay for day to day operational costs called?
Cash
Working capital
Profit
All of the above
Assume a firm sells goods costing £40,000 for £55,000. It provides the customer
with 70% trade credit (i.e. the customer pays only 30% of the price as a down
payment). The profit earned is __________, and the cash received is _________.
£15,000, £12,000
£15,000, £16,500
£15,000, £28,000
£15,000, £55,000
The term _________ describes how efficiently an asset can be converted into
cash.
Liquidity
Solvency
Conversion rate
Working capital cycle
In a given cash flow forecast, the closing balance in June would become the ____________ of July.
Closing balance
Working capital
Net cash flow
Opening balance
Which of the would not cause a cash flow problem?
Understocking
Over borrowing
Poor credit control
Seasonal demand fluctuations
Which of the following reduces a businesses cash flow?
Asking debtors for payment
Repaying an overdraft
Securing better trade credit terms from suppliers
selling an asset would be an example of
cash inflow
cash outflow
What is the purpose of a cash flow forecast?
To calculate profit or loss
To find out 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
Which of the following are cash inflows?
Loan
Grant
Sales Revenue
Loan repayments
Which of the following are cash outflows?
Wages
Rent received
Insurance
Tax rebate
How do you calculate net cash flow?
Inflows - Outflows
Outflows - Inflows
Inflows + Outflows
Revenue - Total costs
What is opening balance?
Opening balance is what the business has left at the end of the month
Opening balance is the same as the opening balance from the previous month
Opening balance is the same as the closing balance from the previous month
Opening balance is the same as break even
How do you calculate closing balance?
Net cash flow + opening balance
Net cash flow - opening balance
(net cash flow / opening balance) x 100
Net cash flow x opening balance
If a business has total inflows of £250 and total outflows of £100, what is their net cash flow?
£150
£350
40%
0.4
If a business has net cash flow of £180 and opening balances of £120, what is their closing balance?
£180
£120
£300
£60
A cash flow statement shows an overview of money flowing in and out of a company
True
False
The amount of cash moving into and out of a business
Cash Flow
Net Worth
paying the rent would be an example of
cash inflow
cash outflow
Ideally, the net cash flow should be
positive
negative
shows the movement of cash during a specific time frame that has already occured
cash flow statement
cash flow projection
What is meant by liquid assets?
money that is going in and out of the business over a period of time
long-term assets that a company has purchased and is using for the production of its goods and services
something containing economic value and/or future benefit
assets that are immediately available for spending on goods and services
What would most likely happen if a business had too little cash or worse, runs out of cash completely?
liquidation
the business would be terminated by the government
Cannot run their production due to unpaid day-to-day expenses
unable to borrow more money to the bank due to trust issue
predicting the flow of money into and out of a business over a certain time period.
cash
cash-flow
cash-flow forecast
analysis account
Customers/clients do not pay their purchase directly (but in a few months). What do you call them?
debtors
trade receivable
creditor
trade payable
Customers/clients do not pay their purchase directly (but in a few months). What do you note this purchase in your finance book?
trade receivables
trade payables
creditor
debtor
You purchase raw materials from your suppliers but you don't pay them directly, but maybe in a few months. You are a ....
debtors
creditor
trade receivable
trade payable
Which of the following are not the most common ways cash flow into a business?
purchase raw materials
debtors pay their trade receivables
sale of assets of the business
pay the salaries of the workers
Which of the following are the most common ways for a business to obtain cash?
the sale of the owner's asset (e.g. private house)
payment of trade payable
borrow money from the bank
sell their products
Which of the following is the not most common way for a business to let the cash flow out of a business?
payment of trade payable
payment of trade receivable
repaying loans (to the bank)
purchasing non-current asset(s)
_______ cash inflow minus cash outflow (two possible answers)
cash flow forecast
net cash-flow
balance of cash-flow
cash-flow
___ is a cash inflow for a car manufacturing business.
Purchase of car component
Payment for cars for costumers
Purchase of a machine for production
Payment for purchase of land to build a new factory
___ is a cash outflow for a clothes retailer.
Cash from the sales of assets
Payment from costumers for the purchase of clothes
Cash for the retailer from the sales of share
Payment to the suppliers of clothes
A ___ net cash flow will increase the closing balance
negative
positive
equal
final
Which of the following are cash inflows?
Loan
Grant
Sales Revenue
Loan repayments
What is the purpose of a cash flow forecast?
To calculate profit or loss
To find out 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
Which of the following are cash outflows?
Wages
Rent received
Insurance
Tax rebate
What is opening balance?
Opening balance is what the business has left at the end of the month
Opening balance is the same as the opening balance from the previous month
Opening balance is the same as the closing balance from the previous month
Opening balance is the same as break even
Which of the following is the correct term to describe a negative closing balance?
Surplus
Deficit
Profit
Loss
Which is the correct term to describe a positive closing balance?
Profit
Surplus
Break even
Deficit
If a business has total inflows of £250 and total outflows of £100, what is their net cash flow?
£150
£350
40%
0.4
If a business has net cash flow of £180 and opening balances of £120, what is their closing balance?
£180
£120
£300
£60
The money going out of a business is the
outflow
inflow
Cash flow is not the same as profit?
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
