On a cashflow forecast, an "closing balance" is…
- …cash remaining at the end of the current month
- …inflow minus outflow
- …the closing balance plus the cash inflow
- …cash remaining from the previous month
The gap between the break-even point and the businesses current output is called…
- …the margin of safety
- …a balance sheet
- …liquidity
- …the break-even point
Which of the following is not a valid start-up cost for a new business?
- Purchasing stock
- Advertising on social media
- Developing new products
- Implementing an extension strategy
What is meant by start-up capital?
- The funds required to start a new business
- A new business hub within a capital city
- The revenue from a businesses first sale
- The person who sets-up the new business
Which type of short-term loan allows a business to spend more money than they have available in their bank account?
- Loan
- Credit
- Overdraft
- Mortgage
On a financial statement, what does it mean if a number has brackets around it
- The value is in pounds
- The value is an estimate
- The value is negative
- The value is a borrowed amount
On a cashflow forecast, an "opening balance" is…
- …cash remaining at the end of the current month
- …inflow minus outflow
- …the closing balance plus the cash inflow
- …cash remaining from the previous month
When revenue and costs are the same, it is called…
- …the margin of safety
- …a balance sheet
- …liquidity
- …the break-even point
Which of these statements is true?
- A positive cashflow means more money is flowing out of the business than in to it
- Businesses can improve cashflow by offering longer trade credit times to customers
- Poor cashflow can cause a profitable business to fail
- A positive net cash flow is the same as profit
Which of the following is a liability?
- Fixed assets
- Current assets
- Short-term debts
- Share value
