Cash flow forecast
Quiz by Dharshani Jayasuriya
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10 questions
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- Q1What is the primary purpose of a cash flow forecast?To predict future cash inflows and outflows over a specific periodTo assess creditworthinessTo calculate profit marginsTo determine the value of assets30s
- Q2Which of the following is typically included in a cash flow forecast?Number of employeesHistorical profit marginExpected sales revenueCurrent stock levels30s
- Q3What is a common problem that can be identified by analyzing a cash flow forecast?High market shareLow employee turnoverIncreased customer satisfactionPotential cash shortages30s
- Q4In a cash flow forecast, which of the following represents cash outflows?Payments to suppliersCapital gainsInvestor contributionsSales income30s
- Q5What is one benefit of regularly updating a cash flow forecast?It guarantees profitIt eliminates the need for a budgetIt prevents all expendituresIt helps in making informed financial decisions30s
- Q6How can a cash flow forecast help a business during a financial downturn?By expanding servicesBy identifying areas to cut costsBy hiring more staffBy increasing product prices30s
- Q7What is the primary time frame typically used in a short-term cash flow forecast?One yearOne monthFive yearsOne week30s
- Q8What usually affects the accuracy of a cash flow forecast?Office locationEmployee performance reviewsBranding strategiesUnpredictable market conditions30s
- Q9Which section is typically found at the beginning of a cash flow forecast?Equity financingCash inflowsNet profitTaxes owed30s
- Q10What is one key component that impacts cash outflows in a cash flow forecast?Brand awarenessCustomer loyaltyOperating expensesEmployee satisfaction30s