forecasting and managing cash flows

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

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

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

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

Which of the following is the correct term to describe a negative closing balance?

• Surplus

• Deficit

• Profit

• Loss