Finance - Cash Flow

Which of the following are examples of cash out (expenses) on a cash budget: (you can select more than one answer)

• Wages

• Bank Loan

• Rent

• Income

________is the amount of money you have available at the beginning of the month on a cash budget.

• Cash in

• Opening Balance

• Cash Available

• Closing Balance

On an income statement _________ is the total amount of money the business has made from selling products or providing a service

• Gross Profit

• Sales Revenue

• Expenses

• Profit for the year

All types of organisations must PUBLICLY produce an income statement.

• False

• True

Gross Profit is sales revenue minus ______.

• Cost of Sales

• Expenses

• Profit

Cash flow is the money going out of a business only

• True

• False

A benefit of using a cash budget is...

• It can be time consuming

• It can predict any cash shortages a business may face

• It can be expensive to prepare