Nat 5 Cash Budgets

How can a business generate cash?

• Purchasing more stock

• Receiving a grant or a loan

• Selling products or services

• Selling assets

What is a cash budget?

• A statement showing profits

• A list of receipts and payments over a period of time

• A list of profits and losses

• A budget of profits and cashflow items

Causes of poor cashflow

• Reducing your wages

• Selling all your assets

• Giving customers too long to pay their debt

• Spending too much money on stock

Which of the following cash flow solutions would reduce the cost of purchases?

• Increase advertising

• Applying for a bank loan

• Selling your assets

• Finding a cheaper supplier

What term describes all the money coming into a business?

• Receipt

• Payment

• Deficit

• Profit

Which of the following does NOT appear in a cash budget

• Opening Balance

• Profit

• Receipts

• Expenses

Which of the following does NOT appear in a cash budget

• Opening Balance

• Profit

• Receipts

• Expenses

Which statement is correct when calculating a cash budget?

• Opening Balance + Receipts

  - Expenses

  = Closing Balance

• Opening Balance - Receipts

  + Expenses

  = Closing Balance

• Closing Balance

  - Receipts

  + Expenses

  = Opening Balance

• Closing Balance

  + Receipts

  - Expenses

  = Opening Balance