SGS Business 1.3.4 The Importance of Cash & Cash Flow

If a company sells 400 units of their product at an average price of $15 per unit, what is their total revenue?

• $6,000
• $4,500
• $4,000
• $7,500

Which of the following is an example of a cash in-flow for a business?

• payment to suppliers
• paying back a loan to a bank
• payment from debtors
• purchase of fixed assets

Which of the following is an example of a cash out-flow for a business?

• payments to creditors
• sale of goods
• payment from debtors
• receiving a loan from the bank

INAC’s gross profit for July was:

• $2,000
• $1,500
• $500
• $2,500

INAC’s net cash flow for July was:

• $2,000
• $1,500
• $500
• $2,500

Which is the best explanation for a business running into cash-flow problems?

• demanding quick payment from customers
• allowing customers a long credit period
• delaying payments to suppliers
• producing goods when demanded by customers

Which of the following is NOT a use of cash-flow forecasts?

• They indicate how much cash is available for paying bills
• They show how much the bank needs to lend to stop insolvency
• They indicate whether the business is holding too much cash
• They indicate how much profit the business will make

Which of the following is the value of x? ($000)

• $2
• $4
• $6
• ($2)

Which of the following is the value of y? ($000)

• $4
• $6
• $9
• ($9)

Which of the following is the value of z? ($000)

• $2
• $5
• $(15)
• $(5)