Question 1

What is a cash flow diagram?

Accepted Answer

A visual representation of the flow of cash in and out of a business over a specific period of time.

Answer

A map of the location of ATMs

Answer

A chart showing the salaries of employees in a business

Answer

A diagram of a bank's cash reserves

Answer

A chart showing the price of stocks in a company

Question 2

What is a positive cash flow?

Accepted Answer

When a business has more cash flowing in than out.

Answer

When a business has zero net cash flow.

Answer

When a business has a lot of debt.

Answer

When a business has no cash flow at all.

Answer

When a business has more cash flowing out than in.

Question 3

What is a negative cash flow?

Accepted Answer

When a business has more cash flowing out than in.

Answer

When a business has a lot of debt.

Answer

When a business has zero net cash flow.

Answer

When a business has no cash flow at all.

Answer

When a business has more cash flowing in than out.

Question 4

What is net cash flow?

Accepted Answer

The difference between cash inflows and outflows.

Answer

The total amount of cash outflows.

Answer

The amount of cash left over after all debts are paid.

Answer

The amount of money invested in the business.

Answer

The total amount of cash inflows.

Question 5