Cash flow (AQA GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What does cash flow refer to in business?
What does cash flow refer to in business?
Movement of money in & out over a period
What is the key difference between cash flow and profit?
What is the key difference between cash flow and profit?
Timing - profit recorded now, cash later
A business sells goods on 30 days credit. When does the cash arrive after the profit is recorded?
A business sells goods on 30 days credit. When does the cash arrive after the profit is recorded?
A month later
Why can profitable businesses still fail?
Why can profitable businesses still fail?
Not enough cash to pay immediate bills
What is the formula for net cash flow?
What is the formula for net cash flow?
Cash Inflows - Cash Outflows
Which of these is a cash inflow?
Which of these is a cash inflow?
Government grants
Which of these is a cash outflow?
Which of these is a cash outflow?
Interest on bank loan
What is special about cash sales as a cash inflow?
What is special about cash sales as a cash inflow?
They provide immediate money
What do receipts from trade customers represent?
What do receipts from trade customers represent?
Payments for goods sold on credit
Which businesses are particularly vulnerable to cash flow problems?
Which businesses are particularly vulnerable to cash flow problems?
Start-up and small businesses
What are the two main causes of cash flow problems?
What are the two main causes of cash flow problems?
Money in too slow OR out too fast
What can happen if a business runs out of cash?
What can happen if a business runs out of cash?
Forced into bankruptcy even if profitable