1. FINANCE QUIZ Name: ______________________ Total marks: 20 My mark: _________ My target grade is: __________ My grade: _________

2. TRUE OR FALSE Cash flow relates to all the money going into the business, no matter what method of payment is used.

3. TRUE OF FALSE The formula for calculating net cash flow is payments - receipts

4. TRUE OR FALSE Revenue is the money received from customers who purchase the businesses products

5. TRUE OR FALSE Profit is calculated by subtracting the costs from the revenue

6. TRUE OR FALSE Positive cash flow is when income is greater than expenditure

7. TRUE OR FALSE Negative cash flow is when income is greater than expenditure.

8. TRUE OR FALSE Business that have a negative cash flow are in danger of not being able to pay their bills.

9. TRUE OR FALSE FIXED COSTS ARE THOSE COSTS THAT DO NOT CHANGE WITH OUTPUT SUCH AS RENT AND RATES

10. TRUE OR FALSE It doesn’t matter whether businesses receive money that are owed promptly

11. TRUE OR FALSE Money received from customers is called an inflow

12. TRUE OR FALSE A cash flow forecast is usually carried out for the last 6 months

13. TRUE OR FALSE A positive cash flow will mean the business will end up with more money in the bank

14. TRUE OR FALSE A variable cost is one that changes directly with output such as raw materials

15. TRUE OR FALSE A cash flow is only concerned with notes and coins the business receives and spends

16. TRUE OR FALSE A business has the following costs: Fixed costs are £300 a week. Variable costs are £2 a unit The business sells 120 units a week. This means the total costs are £240 a week

17. TRUE OR FALSE If total expenditure is higher than total income, this is called negative cash flow

18. TRUE OR FALSE The closing balance is probably the first thing a bank manager or accountant will look at

19. TRUE OR FALSE A business sells sandwiches at £1,20 each and sells 10 in one day. The revenue made is £12.

20. TRUE OR FALSE Payments =£8,000 Receipts=£10,000 Opening balance = £5,000 The net cash flow is £18,000

21. TRUE OR FALSE Payments =£8,000 Receipts=£10,000 Opening balance = £5,000 The closing balance is £7,000