Cash and cash flow (OCR 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 provide to a business?
What does cash provide to a business?
Liquidity
What is cash in a business context?
What is cash in a business context?
Actual money in premises or bank accounts
How is profit defined?
How is profit defined?
Sales revenue minus production costs
Can a business be profitable but still face cash shortages?
Can a business be profitable but still face cash shortages?
Yes, if cash flow is not managed well
What does cash flow forecasting involve?
What does cash flow forecasting involve?
Predicting money flow in and out
How does cash flow forecasting work as a planning tool?
How does cash flow forecasting work as a planning tool?
Shows if there's enough liquidity to pay bills
How does forecasting help with anticipating cash shortages?
How does forecasting help with anticipating cash shortages?
Shows when shortages might occur
What are two ways to deal with cash shortages suggested by forecasting?
What are two ways to deal with cash shortages suggested by forecasting?
Arranging finance or reducing spending
How does cash flow forecasting help with providing targets?
How does cash flow forecasting help with providing targets?
Sets cash flow targets for obligations
How do you calculate total inflow in a cash flow forecast?
How do you calculate total inflow in a cash flow forecast?
Add all cash inflows for the month
How is net cash flow calculated?
How is net cash flow calculated?
Subtract total outflows from total inflows
How do you calculate the closing balance in a cash flow forecast?
How do you calculate the closing balance in a cash flow forecast?
Add net cash flow to opening balance