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CASH FLOW

Total questions: 12

Worksheet time: 3mins

Name
Class
Date
1.

Money received from a business investor would be an example of

a)

cash inflow

b)

cash outflow

c)

closing balance

d)

ending balance

2.

selling an asset would be an example of

a)

cash inflow

b)

cash outflow

c)

operating expenses

3.

paying the rent would be an example of

a)

cash inflow

b)

cash outflow

c)

capital expenditure

4.

Which is not a category of cash flow?

a)

Operating

b)

Investing

c)

Financing

d)

Current Assets

5.

How can a business improve its cash inflow?

a)

By taking out a bank loan

b)

By reducing its supplier costs

c)

By increasing its customers’ credit terms

6.

How can cash outflow be improved?

a)

By negotiating longer supplier credit terms

b)

By taking out a loan

c)

By buying more equipment

7.

What is the formula for closing balance?

a)

Net cash flow − net cash flow

b)

Inflow − outflow

c)

Net cash flow + opening balance

8.

What does a cash flow forecast measure?

a)

The actual cash that flows into and out of a business during an accounting period

b)

The actual cash that flows into a business during an accounting period

c)

The estimated cash that flows into and out of a business during an accounting period

9.

CASH FLOW

a)

list of cash inflows

b)

list of cash outflows

c)

list of cash inflow & cash outflow

d)

list of assets and liability

10.

What does a negative cash flow mean?

a)

The business has more money coming in than going out

b)

The business has more money going out than coming in

c)

The business is making a profit

11.

What is the purpose of a cash flow forecast?

a)

To track the actual cash flow of a business

b)

To estimate the cash flow of a business

c)

To calculate the profit of a business

12.

What impact does a positive cash flow have on a business?

a)

It indicates financial stability and growth

b)

It signifies a decrease in revenue