Cash Flow

What do you call the money coming into a business?

• Inflows

• Outflows

• Cash

• Debt

What do you call the money going out of a business?

• Inflows

• Outflows

• Cash

• Debt

Which of these is not a a cash inflow?

• rental from a sub-let office

• loan from a bank

• utility bills

• sale of shares

Why is cashflow important to an enterprise?

• It means that an enterprise can pay its bills

• It means an enterprise will never go out of business

• It means an enterprise is making money

• It means and enterprise is rich

What is positive liquidity?

• If cash inflows are greater than cash outflows over a period of time.

• If cash inflows are less than cash outflows over a period of time.

What is the difference between a cash flow forecast and a cashflow statement?

• A cash flow statement only records the inflows whereas a cash flow forecast only records the outflows.

• A cash flow statement can only be made in April whereas a forecast can be made any time.

• A cash flow statement is a record of the businesses actual cash inflow and outflows whereas a forecast is a prediction of this information.

• There is no difference.

What two figures would you add together to get the total reciepts?

• 0 + 5000

• 5000 + 20000

• 20000 + 1000

• 25000 + 0

Answer explanation

Total receipts is the same as total inflows so you add together all the money coming into the enterprise.

How do you find the opening balance?

• It is always the same as the opening balance from the previous month.

• It is always the difference between the inflows and outflows.

• It is always the closing balance from the previous month.

• It is always 0.

How do you calculate net inflow/outflow?

• Opening balance - cash outflows

• Closing balance - cash outflows

• Opening balance - closing balance

• Total receipts (total inflows) - Total payments (total outflows)

How do you calculate the closing balance?

• Net cash flow + Opening balance

• Net cash flow - Opening Balance

• Opening balance - closing balance

• Total receipts (total inflows) - Total payments (total outflows)