Cash Flow

Cash Flow Mastery Quiz

Test your knowledge on cash flow management and working capital concepts with our engaging quiz. Perfect for finance professionals, students, or anyone looking to sharpen their understanding of cash flow analysis.

12 insightful questions
Multiple choice format
Understand the impact of various financial decisions

12 Questions3 MinutesCreated by AnalyzingAssets732

Which of the following will increase a working capital requirement?

� Decrease in stock days

� Increase in debtor days

� Increase in creditor days

� Decrease in raw material days

Which one of the following will have a positive impact on CFADS?

� Reducing cost of goods sold

� Raising additional equity from shareholders

� Increasing rate of depreciation on fixed assets

� Reducing the time taken to pay suppliers

When analysing customer forecasts, what technique can be used to challenge more than one assumption at the same time?

� Scenario planning

� Factual questioning

� Sensitivity analysis

� Management simulation

Which one of the following would be included in the Profit & Loss Account as non-cash expense?

� Loss on disposal of Fixed Asset

� Share of profits due to associates

� Release of provision no longer required

� Sales for which customers have not paid at year end

Which one of the following would be included in the Profit & Loss Account as non-cash Income?

� Loss on disposal of Fixed Asset

� Share of profits due to associates

� Release of provision no longer required

� Sales for which customers have not paid at year end

Which one of the following would have a positive impact on repayment capacity?

� Increasing debtor days

� Decreasing operating asset utilisation

� Decreasing variable costs

� Increasing stock days

Which one of the following would have the least impact on repayment capacity?

� Decrease in Operating Margin

� Decrease in specific Bad Debt Provision as a percentage of Sales

� Increase in Capital Expenditure as a percentage of Turnover

� Increase in Net Working Assets as percentage of Sales

Which one of the following scenarios regarding Capital Expenditure is likely to be an unusual trend you would wish to discuss with the management team?

� A declining business with the Depreciation charge in excess of payments made to acquire new Fixed Assets

� Capital Expenditure in line with the annual Depreciation charge for a mature business

� Receipts for the Sale of Fixed Assets in excess of Purchases of Fixed Assets where the business is expanding

� An expanding business with total Capital Expenditure in excess of the annual Depreciation charge and an increase in Operating Cash Flow

Which one of the following statements best describes what we mean by repayment capacity?

� Present Profits

� Present and future Profits

� Present Cash Flows

� Present and future Cash Flows

Which one of the following adjustments to Operating Profit would be made to arrive at EBITDA?

� Amortisation

� Payments to acquire Fixed Assets

� Sale of Investments

� Interest Received

Which one of the following would be included as a non cash adjustment when calculating EBITDA in the Cash Flow Statement?

� Interest paid

� Dividends proposed

� Net Working Capital movement

� Profit or Loss on sale of Fixed Assets

A business made an Operating Profit of £500K. Depreciation was £40K. During the year it had disposed of Fixed Assets with a Net Book Value of £50K, for which it received £80K. Based on these transactions, what was the Net Cash generated?

� £540K

� £550K

� £590K

� £620K

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Cash Flow

Cash Flow Mastery Quiz

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