Lesson 6.2.3

6.2.3 Cash Flow Forecast Quiz: NCFE Business & Enterprise, Unit 6

20 questions · by Revision Ninja

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This free Cash Flow Forecast quiz has 20 multiple choice questions for the NCFE Level 1/2 Technical Award in Business and Enterprise (NCFE Business & Enterprise), Unit 6: Finance. It covers lesson 6.2.3, Cash Flow Forecast, one of the ready-made revision sets written with Revision Ninja and organised by unit on Qwiz Rush.

Use it as a starter, a plenary or an end-of-unit check: host it live on the board and students join with a game code on their own devices — no student accounts and nothing to install — or set it for independent revision with Free Play, where each student works through the questions alone.

Every question runs on a 20-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

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The 20 questions

  1. How does a cash flow statement differ from a cash flow forecast?

    • It shows the year's profit or loss
    • It records cash that has already moved
    • It lists the fixed costs of the business
    • It predicts cash movements for future months

  2. Which item would a bakery enter as a cash inflow in its forecast?

    • Wages paid to bakery staff
    • Cash taken from customer sales
    • Value of unsold stock held
    • Flour bought from a supplier

  3. Which of these would a hair salon record as a cash outflow?

    • Electricity bill paid each month
    • A bank loan paid into the account
    • Money invested by the owner
    • Payment received for a haircut

  4. How is a business's net cash flow for a month calculated?

    • Cash outflows minus inflows
    • Cash inflows minus cash outflows
    • Total revenue minus total costs
    • Opening balance plus inflows

  5. In a cash flow forecast, where does the cash a month starts with come from?

    • The cash left once wages and rent are paid
    • The net cash flow of the month before
    • The total sales made in the month before
    • The closing balance of the month before

  6. A shop starts May with £400 in the bank, receives £2,000 and pays out £2,300. What is its closing balance for May?

    • -£300
    • £4,700
    • £100
    • £2,100

  7. How does keeping a cash flow forecast help a business avoid trouble?

    • It sets the wage rates the business must pay
    • It records payments already made
    • It warns of months when cash runs short
    • It shows which products earn most profit

  8. What does a positive net cash flow for a month tell a business?

    • It made a profit during the month
    • Its sales were higher than last month
    • Its bank balance is now positive
    • More cash came in than went out

  9. A firm's forecast shows negative net cash flow for three months running. What is the main risk?

    • It must pay more tax on its profit
    • It will have to lower its selling price
    • It may not be able to pay its bills
    • It will be making a trading loss

  10. A forecast shows a cash shortfall next month. Which action would best solve it in time?

    • Pay suppliers earlier than agreed
    • Arrange an overdraft with the bank
    • Order extra stock to boost sales
    • Raise prices to increase profit

  11. How does a cash flow forecast differ from a cash flow statement?

    • A statement predicts future cash flows; a forecast records past ones.
    • A forecast covers 12 months; a statement covers a single month.
    • A forecast shows profit; a statement shows cash held in the bank.
    • A forecast predicts future cash flows; a statement records past ones.

  12. A business reports a positive net cash flow for May. What does this tell us about that month?

    • It made a profit on the goods it sold that month.
    • Its closing balance fell below its opening balance.
    • More cash went out of the business than came in.
    • More cash came into the business than went out.

  13. Which formula is used to work out net cash flow for a month?

    • Opening balance - total cash outflow
    • Total cash inflow - total cash outflow
    • Total cash inflow + total cash outflow
    • Total cash outflow - total cash inflow

  14. In February a business had a net cash flow of £2,900 and a closing balance of £9,200. What was its opening balance?

    • £2,900
    • £12,100
    • £6,300
    • £9,200

  15. Which formula gives a business its closing balance for a month?

    • Opening balance + total cash inflow
    • Net cash flow - opening balance
    • Opening balance + net cash flow
    • Opening balance - net cash flow

  16. Why would the owner of a small shop prepare a cash flow forecast?

    • To record the cash it actually received last year
    • To value the assets it owns at the year end
    • To work out the profit it made on each product
    • To spot months when it may run short of cash

  17. Which of these would a business record as a cash inflow?

    • Rent paid monthly to the landlord
    • Stock delivered into the shop by a supplier
    • Wages paid to shop staff
    • Cash received from customers

  18. Which of these items is a cash outflow for a clothes shop?

    • Business rates paid to the council
    • A grant awarded by the council for training
    • Cash taken at the till on a Saturday
    • Interest the bank pays on its savings

  19. A forecast shows a business's closing balance turning negative in June. What should the owner do first?

    • Arrange an overdraft to cover the shortfall
    • Increase spending on advertising to lift sales
    • Take on extra staff to raise output
    • Buy the new delivery van planned for May

  20. In March a business had an opening balance of £9,200 and a net cash flow of £5,100. What is its closing balance?

    • £14,300
    • £5,100
    • £4,100
    • £9,200