IGCSE Business Studies - 5.2 - Cash Flow Forecasting Quiz

What does a cash flow forecast predict?

• Profit and loss

• The timing of cash inflows and outflows

• Employee productivity

• Market demand

Which of the following is NOT a component of a cash flow forecast?

• Cash inflows

• Cash outflows

• Profit margins

• Net cash flow

What is 'net cash flow'?

• Total revenue minus total expenses

• The difference between cash inflows and cash outflows

• The amount of money in the bank account at the end of the year

• Sales minus variable costs

What does a negative net cash flow indicate?

• The business has more inflows than outflows

• The business has more outflows than inflows

• The business is profitable

• The business is expanding

What is 'closing balance' in a cash flow forecast?

• The total sales at the end of a period

• The total cash inflows at the end of the period

• The cash available at the end of the period

• The profit at the end of the period

What is the purpose of a cash flow forecast?

• To estimate future cash inflows and outflows

• To calculate the total costs of a business

• To determine employee salaries

• To measure the total revenue of a business

If a business has a cash flow problem, which of the following is most likely to be the cause?

• Too many staff

• Insufficient inflows to cover outflows

• High profit margins

• Low customer satisfaction

Which of the following would be recorded as a cash outflow in a cash flow forecast?

• Bank loan

• Sales revenue

• Employee wages

• Investment from shareholders

Which of the following is an example of cash inflow?

• Purchase of machinery

• Loan repayment

• Sales revenue

• Payment for raw materials

Which of the following best describes 'working capital'?

• The money a business owes to its suppliers

• The profit earned by a business

• The capital available to cover day-to-day operations

• The total value of fixed assets