Calculating cash flow (Edexcel 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 represent in a business?
What does cash flow represent in a business?
Money movement in and out daily
What is the main purpose of a cash flow forecast?
What is the main purpose of a cash flow forecast?
Predict money movement over a period
How is net cash flow calculated?
How is net cash flow calculated?
Total receipts - Total payments
Which of these is an example of an inflow (receipt)?
Which of these is an example of an inflow (receipt)?
Investment from owners
Which of these is an example of an outflow (payment)?
Which of these is an example of an outflow (payment)?
Raw materials purchases
What is the opening balance of a month always equal to?
What is the opening balance of a month always equal to?
Previous month's closing balance
How is the closing balance calculated?
How is the closing balance calculated?
Opening balance + Net cash flow
If receipts are £20,000 and payments are £14,000, what is the net cash flow?
If receipts are £20,000 and payments are £14,000, what is the net cash flow?
£6,000 positive
If opening balance is £3,000 and net cash flow is £6,000, what is the closing balance?
If opening balance is £3,000 and net cash flow is £6,000, what is the closing balance?
£9,000
Is negative net cash flow always a bad sign for a business?
Is negative net cash flow always a bad sign for a business?
No, if it's planned and temporary
How do cash flow forecasts help with business planning?
How do cash flow forecasts help with business planning?
Identify months with cash shortages
If a business forecasts a negative closing balance, what could they do?
If a business forecasts a negative closing balance, what could they do?
Increase receipts or delay payments