stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
33B1723B3 Flashcards | StudBud
Explore
/
33B1723B3
33B1723B3
15 terms
·
StudBud Administration
·
77 plays
Imported from external platform
Flashcards
15 cards
F
Practice quiz
P
Host live
L
Questions
15
Answers
1
A cash flow forecast records the flows of cash in and out of a firm over the course of a year
True
False
2
A financial decision for management is whether to have a 'contingency fund' to be used for
Planned, but large one-off purchases
Paying creditors, including suppliers
Ensuring unforeseen events won’t cause insolvency
Financing expansion and organic growth
3
Which of the following is not a component part of ‘current liabilities’
Company tax
Creditors
Work-in-progress
An unpaid utility bill
4
A good method used to increase cash flow for any firm is to simply generate more sales
False
True
5
The time between spending cash on production and receiving cash payments from customers is
The working capital cycle
Liquidation of assets (into cash)
Working capital
Liquidity
6
A cash flow forecast is to primarily
Identify the different cash inflows and outflows
Provide a planning tool for managing a firm's cash flows
Estimate the likely value of profit over a year
Identify sources of sales revenue and production costs
7
One of these things is not a current asset. Identify which one it is
Plant and machinery
Debtors
Raw materials
Raw materials
8
Overtrading
is expanding rapidly without the necessary finance, causing liquidity problems
True
False
9
Money owed by an organisation where the credit terms exceed 12 months are termed
Long-term liabilities
External finance
Long-term bank loans
Debentures
10
A financial document measuring the cash generated or used by a firm in a given period is a
Cash flow statement
Trading account
Profit and loss account
Cash flow forecast
11
Annual cash flow forecasts are used to estimate final profit at the end of a trading period
True
False
12
One of the best methods used to increase cash flow for any firm is to simply cut staff numbers
False
True
13
One of these things is not like the other
Debtors
Stocks
Cash
Creditors
14
Money owed by a firm where the credit terms is not in excess of 12 months is termed a(n)
External liability
Debtor
Current liability
Creditor
15
Liquidation is when a business cannot meet its short-term debts
True
False
