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Cash flow forecast

Quiz by Dharshani Jayasuriya

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10 questions
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  • Q1
    What is the primary purpose of a cash flow forecast?
    To predict future cash inflows and outflows over a specific period
    To assess creditworthiness
    To calculate profit margins
    To determine the value of assets
    30s
  • Q2
    Which of the following is typically included in a cash flow forecast?
    Number of employees
    Historical profit margin
    Expected sales revenue
    Current stock levels
    30s
  • Q3
    What is a common problem that can be identified by analyzing a cash flow forecast?
    High market share
    Low employee turnover
    Increased customer satisfaction
    Potential cash shortages
    30s
  • Q4
    In a cash flow forecast, which of the following represents cash outflows?
    Payments to suppliers
    Capital gains
    Investor contributions
    Sales income
    30s
  • Q5
    What is one benefit of regularly updating a cash flow forecast?
    It guarantees profit
    It eliminates the need for a budget
    It prevents all expenditures
    It helps in making informed financial decisions
    30s
  • Q6
    How can a cash flow forecast help a business during a financial downturn?
    By expanding services
    By identifying areas to cut costs
    By hiring more staff
    By increasing product prices
    30s
  • Q7
    What is the primary time frame typically used in a short-term cash flow forecast?
    One year
    One month
    Five years
    One week
    30s
  • Q8
    What usually affects the accuracy of a cash flow forecast?
    Office location
    Employee performance reviews
    Branding strategies
    Unpredictable market conditions
    30s
  • Q9
    Which section is typically found at the beginning of a cash flow forecast?
    Equity financing
    Cash inflows
    Net profit
    Taxes owed
    30s
  • Q10
    What is one key component that impacts cash outflows in a cash flow forecast?
    Brand awareness
    Customer loyalty
    Operating expenses
    Employee satisfaction
    30s

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