WJEC GCSE Business Finance Cash Flow MSE

What is the definition of Cash Flow in a business context?

• The profit a business makes from its operations.

• The money that flows into and out of a business on a day-to-day basis.

• The total assets a business owns.

• The amount of investment a business receives.

What is the purpose of a Cash Flow Forecast?

• To calculate the total sales a business makes.

• To determine the amount of taxes a business owes.

• To set out a business's expected inflows and outflows of cash over a period of time.

• To record the daily transactions of a business.

What does Net Cash Flow represent?

• The total revenue from sales.

• The amount of cash a business has at the start of the month.

• The predicted 'profit' on a cash flow forecast.

• The cash remaining in a business at the end of the month.

How is Net Cash Flow calculated?

• Net Cash Flow = Total Inflow + Total Outflow

• Net Cash Flow = Total Inflow - Total Outflow

• Net Cash Flow = Opening Balance + Total Inflow

• Net Cash Flow = Closing Balance - Opening Balance

What is the definition of Turnover (Revenue)?

• The total expenses a business incurs.

• The value of sales / income / revenue of a business.

• The amount of cash flow a business predicts.

• The profit after deducting all business expenses.

Which of the following is an example of an expense of a business?

• Quantity Sold

• Selling Price

• Insurance

• Net Cash Flow

What is the Opening Balance in the context of cash flow?

• The cash remaining in a business at the end of a month.

• The predicted 'profit' on a cash flow forecast.

• The cash available to a business at the start of a month, carried over from the closing balance of the previous month.

• The total inflow of cash into a business.

How is the Closing Balance calculated?

• Closing Balance = Opening Balance + Net Cash Flow

• Closing Balance = Net Cash Flow - Opening Balance

• Closing Balance = Total Inflow - Total Outflow

• Closing Balance = Total Outflow - Total Inflow

Which of the following is NOT a way to improve Cash Flow Position?

• Reducing staff

• Buying cheaper materials

• Increasing promotions

• Increasing product quality