Which of the following best describes cash?
Notes
Notes and coins
Notes, coins and money in the bank
Which of the following is an example of an overhead cost?
Raw materials
Rent
Credit arrangements
What does a cash flow forecast measure?
The actual cash that flows into and out of a business during an accounting period
The actual cash that flows into a business during an accounting period
The estimated cash that flows into and out of a business during an accounting period
What does a negative cash flow mean?
The business has more money coming in than going out
The business has more money going out than coming in
The business is making a profit
Which of the following is an example of a cash inflow?
The repayment of a loan
Making a rent payment
A new bank loan
What is the net cash flow if the total inflows are £800 and the total outflows are £3,000?
−£2,500
−£2,200
£2,200
How can a business improve its cash inflow?
By using an overdraft
By reducing its supplier costs
By increasing its customers’ credit terms
How can cash outflow be improved?
By negotiating longer supplier credit terms
By taking out a loan
By buying more equipment
Which best describes net cash flow?
Cash in minus cash out
Cash in plus cash out
Cash in divided by cash out
What is the formula for closing balance?
Opening balance minus net cash flow
Inflow minus outflow
Net cash flow plus opening balance