1.3.3b Cash-flow forecasts: inflows, outflows, net cash flow and balances Quiz: Pearson Edexcel Business, Unit 3

The 20 questions

1. Opening balance £2,000, cash inflows £5,000, cash outflows £6,500. What is the closing balance?

   • £7,000
   • £6,500
   • £500
   • £3,000

2. Opening balance £1,500, cash inflows £4,200, cash outflows £3,100. What is the closing balance?

   • £2,200
   • £5,700
   • £3,100
   • £2,600

3. Opening balance £800, cash inflows £2,600, cash outflows £2,900. What is the closing balance?

   • £600
   • £2,900
   • £3,400
   • £500

4. Opening balance £3,000, cash inflows £7,400, cash outflows £6,200. What is the closing balance?

   • £10,400
   • £6,200
   • £4,200
   • £2,400

5. Opening balance £500, cash inflows £3,900, cash outflows £4,100. What is the closing balance?

   • £4,400
   • £4,100
   • £300
   • £400

6. Opening balance £1,200, cash inflows £6,000, cash outflows £6,000. What is the closing balance?

   • £0
   • £1,200
   • £7,200
   • £6,000

7. Cash inflows are £4,500 and cash outflows are £3,200 in a month. What is the net cash flow?

   • -£3,200
   • £3,600
   • £1,300
   • £7,700

8. Cash inflows are £2,100 and cash outflows are £2,750 in a month. What is the net cash flow?

   • -£650
   • -£2,300
   • £4,850
   • -£2,750

9. Cash inflows are £6,800 and cash outflows are £6,800 in a month. What is the net cash flow?

   • £13,600
   • £0
   • -£6,800
   • £1,000

10. Cash inflows are £9,000 and cash outflows are £4,300 in a month. What is the net cash flow?

    • £4,700
    • £13,300
    • £10,400
    • -£4,300

11. Cash inflows are £1,650 and cash outflows are £1,980 in a month. What is the net cash flow?

    • £3,630
    • -£1,660
    • -£330
    • -£1,980

12. Cash inflows are £3,300 and cash outflows are £1,900 in a month. What is the net cash flow?

    • £3,800
    • £1,400
    • £5,200
    • -£1,900

13. Cash inflows are £7,100 and cash outflows are £8,400 in a month. What is the net cash flow?

    • -£8,400
    • -£1,300
    • £15,500
    • -£3,600

14. Cash inflows are £5,000 and cash outflows are £2,500 in a month. What is the net cash flow?

    • £6,000
    • £2,500
    • £7,500
    • -£2,500

15. What action should a business take to cover a negative net cash flow month?

    • Pay corporation tax
    • Write off debt
    • Draw on reserves
    • Increase dividend

16. What happens to a business cash balance when it records a positive monthly net cash flow?

    • Profit becomes zero
    • The balance falls
    • Debtors disappear
    • The balance rises

17. How does a positive monthly net cash flow affect the closing cash balance?

    • Decreases the total
    • Has no effect
    • Increases the total
    • Doubles the overdraft

18. What is the consequence of a negative net cash flow in a cash-flow forecast?

    • Profit increases
    • Costs disappear
    • Sales double
    • Cash balance falls

19. What is calculated by adding the net cash flow to the opening balance?

    • Total inflows
    • Net cash flow
    • Closing balance
    • Opening balance

20. Where does the opening balance in a monthly cash-flow forecast come from?

    • Previous closing balance
    • Annual net profit
    • Total yearly sales
    • Current share capital

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