Reference no: EM132942348

Problem 1: Which one of the following would be a cash outflow for a start-up business?

a. Payment by a debtor

b. Rent for the office

c. Cash sales from customers

d. Share Capital invested by the owner

Problem 2: Cash flow forecasts often include an amount for unforeseen payments. This is commonly known as a:

a. Variable amount

b. Closing balance

c. Risk Factor

d. Contingency

Problem 3: Which is not the benefit for a start-up business of producing a cash flow forecasts?

a. Identifies potential need for a small business loan

b. Enables business to reduce the break-even output

c. Helps secure finance from investors or the bank

d. Provides a guide against which to measure actual cash flows

Problem 4: What is a bad debt?

a. An amount owed by a supplier that cannot be paid

b. A customer contract cannot be completed

c. An amount owed by a customer that will not be paid

d. A sale is unprofitable