Cashflow Essentials Quiz
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Questions and Answers

What does cashflow refer to?

  • The movement of money in and out of a business (correct)
  • The number of employees in a business
  • The number of products sold by a business
  • The total assets of a business

    • Why is cashflow important for a business?

  • It helps in determining the financial health of the business (correct)
  • It determines the number of competitors in the market
  • It indicates the market share of the business
  • It shows the number of customers served by the business

    • What is a positive cashflow indicative of?

  • The business is generating more cash than it is spending (correct)
  • The business is over-investing in non-liquid assets
  • The business is facing financial difficulties
  • The business is not making any profits

    • Which of the following best describes positive cashflow?

    <p>More money coming in than going out (D)</p> Signup and view all the answers

    What impact does negative cashflow have on a business?

    <p>Decreased ability to pay bills and employees (C)</p> Signup and view all the answers

    What is the primary purpose of cashflow management for a business?

    <p>Ensuring there is enough cash to cover expenses (C)</p> Signup and view all the answers

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