Understanding Cash Flow Concepts

What is cash flow?

• Cash flow is the amount of debt.

• Cash flow is the net amount of cash being transferred in and out.

• Cash flow refers to the total profit of a business.

• Cash flow is the value of a company's assets.

What are the main elements of personal cash flow statement?

• Profit margins

• Revenue streams

• cash inflows, cash outflows and net cash flow

• Expenses

What is a cash flow statement?

• A cash flow statement is a report that lists all the salaries.

• A cash flow statement is the company's marketing strategy.

• A cash flow statement is a financial report that shows the cash inflows and outflow during a specific period.

• A cash flow statement is a summary of a company's assets and liabilities.

How can Aiden improve his cash flow?

• Invest in high-risk stocks

• Get a higher salary job

• Increase bank loan

• Decrease expenses.

In cash flow, extra money can be placed in ____________

• emergency fund.

• Drawer

• expense account

• revenue.

What role does cash flow play in financial planning?

• Cash flow is irrelevant to business operations.

• Cash flow is essential for assessing financial health, ensuring liquidity, and guiding investment decisions.

• Cash flow has no impact on investment strategies.

• Cash flow is only important for tax purposes.

Luna is managing her finances and notices that her expenses are higher than her income. What is negative cash flow?

• Negative cash flow occurs when an individual has more assets than liabilities

• Negative cash flow is when cash inflows exceed cash outflows.

• Negative cash flow is when cash outflows exceed cash inflows.

• Negative cash flow refers to a profit increase.

What are common causes of cash flow problems?

• Excessive expenses

• Better pay

• More assets

• Proper financial planning.

If there is a negative cash flow, the individual should ___________

• cut unnecessary expenses.

• channel purchases through credit card .

• use Grab transport

• increase spending.

All of the following contribute to cash in flow EXCEPT ____

• income

• interest from savings accounts

• money received from the sale of assets like houses or cars.

• expenses.