Which of these best describes the nature of cash flow?

Cash flow is the movement of cash in and out of the business

Which of the following best describes a budget?

A financial plan of the future of an organisation

Cash which comes into the business

Cash that goes out of the business

When should budgets be planned?

Before the start of the companies next financial period.

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Budgets & Cash budgets

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Questions 10

Answers

1
Which of these best describes the nature of cash flow?
Cash flow is the movement of cash into a business
Cash flow shows how much profit the company makes
Cash flow is the movement of cash in and out of the business
Cash flow is how long the company takes to pay its debts
2
What is the most common cause of new businesses failing
Poor cash flow
Poor quality of products
Lack of profits
Paying to much tax
3
When selecting new suppliers managers should make their decision based on..
Quality
All should be considered
Terms of credit agreements
Service
4
You agreed to allow two months credit for an invoice generated in march, when will you be paid?
July
March
Janurary
May
5
Reviewing current performance against the budget will....
Improve control within the organisation
Help identify any issues in financial performance
Help managers conduct daily business operations
All of these
6
You have agreed to pay 30% on a cash basis, how much will you have to pay on a credit basis?
70%
30%
80%
40%
7
Which of the following best describes a budget?
A financial plan of the future of an organisation
An expression of historic financial data
A financial prediction of the short term future
A set of numbers that no one looks at
8
What are receipts?
Cash that goes out of the business
The balance carried over at the end of the month
The balance at the start of the financial period
Cash which comes into the business
9
What are payments?
Cash which comes into the business
The balance at the start of the financial period
Cash that goes out of the business
The balance carried over at the end of the month
10
When should budgets be planned?
Before the start of the companies next financial period.
One month after the end of the companies financial period
Once a month
Every Monday morning

Budgets & Cash budgets Flashcards | StudBud

Budgets & Cash budgets

10 termsStudBud Administration1,177 plays

Budgets & Cash budgets

Flashcards10 cardsFPractice quizPHost liveL

Questions 10

Answers

1
Which of these best describes the nature of cash flow?
Cash flow is the movement of cash into a business
Cash flow shows how much profit the company makes
Cash flow is the movement of cash in and out of the business
Cash flow is how long the company takes to pay its debts
2
What is the most common cause of new businesses failing
Poor cash flow
Poor quality of products
Lack of profits
Paying to much tax
3
When selecting new suppliers managers should make their decision based on..
Quality
All should be considered
Terms of credit agreements
Service
4
You agreed to allow two months credit for an invoice generated in march, when will you be paid?
July
March
Janurary
May
5
Reviewing current performance against the budget will....
Improve control within the organisation
Help identify any issues in financial performance
Help managers conduct daily business operations
All of these
6
You have agreed to pay 30% on a cash basis, how much will you have to pay on a credit basis?
70%
30%
80%
40%
7
Which of the following best describes a budget?
A financial plan of the future of an organisation
An expression of historic financial data
A financial prediction of the short term future
A set of numbers that no one looks at
8
What are receipts?
Cash that goes out of the business
The balance carried over at the end of the month
The balance at the start of the financial period
Cash which comes into the business
9
What are payments?
Cash which comes into the business
The balance at the start of the financial period
Cash that goes out of the business
The balance carried over at the end of the month
10
When should budgets be planned?
Before the start of the companies next financial period.
One month after the end of the companies financial period
Once a month
Every Monday morning