Financial Concepts Quiz

What is a Cash Flow Forecast?

• A written plan estimating future cash receipts and payments

• A plan for future investments

• A strategy to reduce expenses

• A method to increase cash receipts

What does a Cash Deficit indicate?

• Cash payments exceed cash receipts

• Cash receipts exceed cash payments

• Cash receipts and payments are equal

• Cash is invested in surplus

What is the purpose of Credit Control Methods?

• To increase cash receipts

• To encourage prompt payments from customers

• To manage household budgets

• To reduce cash payments

What is Fixed Expenditure?

• Expenses that vary over time

• Optional spending not essential for living

• Regular bills with consistent amounts

• Strategies to boost income

What is a Bank Overdraft?

• A loan for buying homes

• A strategy to increase cash receipts

• An agreement allowing withdrawal beyond account balance

• A method to reduce expenses

What is the role of Financial Control?

• To monitor actual vs. forecasted financial performance

• To manage household budgets

• To encourage prompt payments from customers

• To increase cash receipts

What is a Current Account used for?

• Medium-term loans

• Daily transactions and payments

• Long-term investments

• Short-term loans

What is Factoring?

• A plan for future investments

• A strategy to increase cash receipts

• A method to reduce expenses

• Selling debtors to a bank for immediate cash

What is Hire Purchase (HP)?

• A method to increase cash receipts

• Buying an asset now, paying in installments

• A strategy to reduce expenses

• A plan for future investments

What is Leasing?

• Renting an asset without acquiring ownership

• Buying an asset now, paying in installments

• A method to increase cash receipts

• A strategy to reduce expenses