12 Questions
What is the primary role of cash in a company, based on the text?
To finance the company's activities
What does 'Cash is king' imply?
Cash is the most valuable asset in the company
Who is ultimately responsible for managing cash within a company?
Finance director
In the context of cash management, what is the main consequence of poor credit control?
Cash shortage
How can a business prevent a cash shortage, as suggested in the text?
Utilizing cash flow forecasting
What does a positive cash flow indicate about a business, based on the text?
Financial stability
What is the main focus when trying to improve net cash flow?
Reducing expenses
How does cash flow relate to the product life cycle according to the text?
New products replace declining ones to maintain cash flow
Why is cash flow forecasting considered important for businesses?
To identify potential cash shortages and business problems
What is working capital mainly used for in a business?
Covering day-to-day operational expenses
Which of the following is NOT a factor that influences the accuracy of cash flow forecasting?
Advanced forecasting tools
In the context of the text, what best describes profit?
Net income after all expenses are deducted
Test your knowledge on cash and cash management, including concepts such as current assets, cash flow, and the importance of cash for financing activities. Learn about who is typically in charge of managing cash in a company.
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