Cash Flow Management and Budgeting Quiz Test your understanding of cash flow management with these 15 questions covering cash budgeting, financial statements, and strategies for effective management.
#1
Decrease in accounts payable
Increase in accounts receivable
Increase in expenses
Decrease in inventory
#2
To track all financial transactions
To forecast cash inflows and outflows
To calculate net income
To determine tax liabilities
#3
To provide information about a company's sources of cash
To report a company's net income
To evaluate a company's long-term investments
To analyze a company's inventory turnover ratio
#4
Collection from accounts receivable
Purchase of inventory
Sale of fixed assets
Interest earned on investments
#5
They show a company's profitability
They provide information on cash movements
They determine a company's market share
They assess a company's debt ratio
#6
Maintaining low liquidity
Delaying payments to suppliers
Avoiding short-term borrowing
Ignoring accounts receivable
#7
The company is profitable
The company is insolvent
The company has excessive debt
The company is facing bankruptcy
#8
Operating cash flow - Capital expenditures
Net income + Depreciation
Cash inflow - Cash outflow
Total revenue - Total expenses
#9
Improved financial stability
Lower borrowing costs
Increased risk of bankruptcy
Better decision-making ability
#10
Increasing accounts payable
Delaying customer payments
Minimizing cash reserves
Forecasting future cash flows
#11
Income statement
Balance sheet
Statement of cash flows
Statement of retained earnings
#12
The company is effectively managing its debt
The company is investing heavily in long-term assets
The company is experiencing financial distress
The company is generating excess cash from operations
#13
Maximizing short-term profits
Minimizing long-term investments
Ensuring sufficient liquidity
Increasing shareholder dividends
#14
It limits investment opportunities
It expands investment options
It increases borrowing costs
It reduces shareholder dividends
#15
By maximizing short-term profits
By minimizing long-term investments
By ensuring sufficient liquidity
By reducing shareholder dividends
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