Finance

Question 1

What is a cash budget?

Answer 1

its a plan of finance for the future, shows the expected flow of cash in a business

Question 2

What si a cash flow problem?

Answer 2

When a business has more cash going out than coming in, when the business has a deficit as a closing balance

Question 3

What causes a cash flow problem?

Answer 3

Increase in price from suppliers, spending too much cash on stock that is not being sold, giving customers too long to pay their debt, purchasing equipment or vehicle at the wrong time, cash out is too high, owners taking out too much stock or cash

Question 4

What are examples fo cash flow solutions

Answer 4

Have a sale to reduce stock, increase the selling price fo products, do not expensive items, find a cheaper supplier, owners not drawing out of the business,

Question 5

What are fixed costs?

Answer 5

Costs which do not change as output changes

Question 6

What are variable costs?

Answer 6

Costs which do change as output changes

Question 7

How are spreadsheets used in finance?

Answer 7

used to calculate staff wages, to prepare a cash budget, saves the finance department time with automated calculations and templates, to prepare financial statements