Cash Flow Quiz

Which of these is the correct definition of a cash inflow?

• Cash inflow is the profit made after all expenses.
• Cash inflow refers to the money owed to a business.
• Cash inflow is the money received by a business or individual.
• Cash inflow is the total expenses of a business.

Which of these is the correct definition of a cash flow forecast?

• A cash flow forecast is a record of past cash transactions.
• A cash flow forecast is a summary of a company's assets and liabilities.
• A cash flow forecast is a detailed report of employee salaries.
• A cash flow forecast is a financial estimate of future cash inflows and outflows.

Which of these are examples of a cash inflow?

• Utility expenses
• Tax payments
• Equipment purchases
• Sales revenue, loan proceeds, investment income

Which of these is the correct definition of net cash flow?

• Net cash flow is the sum of all cash inflows without considering outflows.
• Net cash flow refers to the cash generated from investments only.
• Net cash flow is the difference between cash inflows and cash outflows.
• Net cash flow is the total amount of cash available at the end of a period.

How do you calculate net cash flow?

• Net Cash Flow = Total Revenue - Total Expenses
• Net Cash Flow = Total Assets - Total Liabilities
• Net Cash Flow = Total Cash Inflows - Total Cash Outflows
• Net Cash Flow = Total Cash Inflows + Total Cash Outflows

Which of these is a benefit of cashflow forecasting?

• It guarantees a profit every month.
• It helps in planning for expenses and avoiding liquidity issues.
• It eliminates all financial risks.
• It ensures immediate access to cash at all times.

Which of these is a drawback of cashflow forecasting?

• High accuracy in predictions
• Simplicity in calculations
• Inaccuracy due to reliance on assumptions
• Immediate cash availability

Which of these is the correct definition of insolvency?

• Insolvency refers to having a surplus of assets over liabilities.
• Insolvency is a legal term for bankruptcy proceedings.
• Insolvency is the inability to pay debts as they come due.
• Insolvency is the ability to pay debts on time.

Match the key terms to their correct definition

• The amount of money available at the start of a period

• Closing Balance

• The total amount of money received during a period

• Total Inflows

• The amount of money available at the end of a period

• Total Outflows

• The total amount of money spent during a period

• Net Cash Flow

• The difference between total inflows and total outflows

• Opening Balance

Match the items into their correct category

Groups:

(a) Inflow

,

(b) Outflow

,

(c) Breeds of Cat

,

(d) Capital Cities

• Raw Materials

• Buenos Aires

• Supplier Refund

• Utility Bills

• Lima

• Rent

• Sales

• Creditors

• Moscow

• London

• Interest on Savings

• Ragamuffin

• Paris

• Goverment Grant

• Cornish Rex

• Manx

• Siamese

• Stock

• Ragdoll

• Debtors