Cashflow

Which TWO of the following are the correct terms for the cash that a business has at the start of the month?

• Balance carried forward

• Balance brought forward

• Opening Balance

• Total Cash Available

Which TWO of the following are the correct terms for the cash a business has at the end of the month?

• Closing balance

• Cash outflows

• Net cash flow

• Balance carried forward

How do you calculate net cash flow?

• Balance brought forward + Cash Inflows

• Inflows - Outflows

• Total cash available - cash outflows

• None of the above

How do you calculate total cash available?

• Inflows - Outflows

• Net cash flow - outflows

• Balance brought forward + cash inflows

• Balance brought forward - cash inflows

Cash flow forecasts can show two of the following...

• Whether a business will make a profit

• Whether a business has sufficient cash to meet their debt obligations

• Whether a business will be able to repay a loan

• Whether a business has enough shareholders

Buying too many fixed assets drains cash, a possible solution is

• Never renting

• Increasing production

• Reducing production

• Leasing and renting

When does a business experience cash flow problems?

• When outflows are greater than inflows

• When inflows are greater than outflows

Which of these are methods that could be used to improve cash flow.

• Reducing costs by buying from a different supplier.

• Increasing its revenue by slightly raising its prices.

• Selling off some fixed assets.

• Paying back all of the refunds it owes customers

• Expanding into a new range of products.

What is all the money entering an enterprise’s bank account

• Revenue
• Cash inflow
• Cash outflow

Cash inflows and receipts mean the same thing

• true
• false