Timings of Cash Inflows and Outflows & Decision Making (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is cash flow?
What is cash flow?
The movement of money into & out of business
What are payables?
What are payables?
Amounts owed to suppliers for credit purchases
What are receivables?
What are receivables?
Amounts owed to business by credit customers
Why can a profitable business still fail?
Why can a profitable business still fail?
It cannot pay immediate bills despite profit
Why forecast cash shortfalls?
Why forecast cash shortfalls?
To predict when outflows exceed inflows
What period does a cash-flow forecast typically cover?
What period does a cash-flow forecast typically cover?
12 months, shown month by month
What does historical data show?
What does historical data show?
What actually happened in the past
What is a key characteristic of forecast data?
What is a key characteristic of forecast data?
Based on assumptions that might be incorrect
Which tools help analyse financial data?
Which tools help analyse financial data?
Budgets, cash-flow forecasts, breakeven
Why must financial data be treated with caution?
Why must financial data be treated with caution?
It has limitations & may not predict future