Which of the following could cause a cash flow problem?
An increase in expenses
An increase in sales
Sale of an asset
Which of the following cash flow solutions would reduce the cost of purchases?
Increase advertising
Applying for a bank loan
Finding a cheaper supplier
What term describes all the money coming into a business?
Payment
Deficit
Receipts
Which of the following cash flow solutions would release cash that can then be used elsewhere in the business?
Offer discounts to customers who pay quickly
Sale of assets
Which of the following will reduce the cash balance of a business?
Increase in sales
Increase in expenses
Increase in opening balance
What terminology describes all the money coming into and going out of a business?
Cash surplus
Cash budget
Cash flow
What do you call a document prepared in advance to help a business manage its cash flow?
Cash deficit
What is the purpose of a cash budget?
To show planned receipts and payments and to help make decisions
To show the profit or loss of a business
To show the value of a business
What term do we use to describe all the money going out of a business?
Payments
Deficits
What outcome would you expect if more cash is leaving a business than coming into it?
A surplus closing balance
Sales will be seen to increase
A closing balance showing a deficit