The importance of cash to a business (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
Cash is described as what for any business operation?
Cash is described as what for any business operation?
The lifeblood
What does it mean when a business becomes insolvent?
What does it mean when a business becomes insolvent?
It struggles to meet financial obligations
Which of these is a critical purpose businesses require cash for?
Which of these is a critical purpose businesses require cash for?
Paying employee wages and salaries
What is the fundamental difference between cash and profit?
What is the fundamental difference between cash and profit?
Cash is available now; profit is calculated
Why can profitable businesses still experience cash flow difficulties?
Why can profitable businesses still experience cash flow difficulties?
Timing differences in transactions
What type of business experiences dramatic cash flow fluctuations throughout the year?
What type of business experiences dramatic cash flow fluctuations throughout the year?
Seasonal businesses
How does holding too much inventory affect a business?
How does holding too much inventory affect a business?
It ties up money
What does net cash flow show in a cash flow forecast?
What does net cash flow show in a cash flow forecast?
Difference between receipts & payments
What does a negative net cash flow figure indicate?
What does a negative net cash flow figure indicate?
More money leaving than coming in
Opening balance £3,000, receipts £12,000, payments £10,000. What is the closing balance?
Opening balance £3,000, receipts £12,000, payments £10,000. What is the closing balance?
£5,000
Which strategy can increase cash inflows for a business?
Which strategy can increase cash inflows for a business?
Offering early payment incentives
How can a business reduce cash outflows?
How can a business reduce cash outflows?
Negotiate better supplier payment terms