Y8 Business - C7 Cash Flow Planning

Why cash consider as a liquid asset?

• The ownership can be transferred.

• It can be spent on goods and services at any time.

• It can be moved from one place to another.

• It can be flowed from one's hand to another.

Businesses that are facing cash flow problem means that they...

• only accept credit card in their businesses.

• have enough cash to spend.

• do not have enough cash to spend.

• do not accept cash in their businesses.

Cash flow means...

• The flow of asset from a business to another business.

• The transfer of money from business to customer.

• The transfer of money from customer to business.

• The flow of money in and out of a business.

Cash inflows is the transfer of cash into a business.

• False

• True

Cash outflows is the transfer of cash out of a business.

• False

• True

Which is NOT an example of cash inflow?

• Repaying a bank loan.

• Sale of goods to customers.

• Borrowing from a bank.

• Investment for investors.

Which is NOT an example of cash outflow?

• Payment of salary to workers.

• Payment from debtors.

• Paying rent of office and factory.

• Purchasing goods and services.

What happen if a company is short of cash?

• Lose customers to competitor.

• Open up another branch or outlet.

• Company still able to pay rent and salary.

Cash flow can be considered as a PROFIT in a company?

• True

• False

Which is the formula for cash flow?

• Cash flow = Cash inflow - cash outflow

• Cash flow = Cash outflow - cash inflow