Cash Flow Quiz by Shubhrata Shrestha | Sep 2, 2025 | 0 comments Cash Flow Quiz 1. What is the primary cause of business failure? a) Low profit b) Poor leadership c) Lack of cash flow d) Excess marketing None 2. Which of the following is considered a liquid asset? a) Factory building b) Machinery c) Raw materials d) Cash None 3. The working capital cycle measures the time between: a) Paying suppliers and receiving cash from customers b) Recording profit and distributing dividends c) Loan approval and repayment d) Cash inflows and profit growth None 4. Which method reduces cash outflows? a) Accepting cash payments only b) Leasing equipment instead of buying c) Tightening credit control d) Changing pricing policy None 5. A company that sells products on credit but struggles to pay suppliers is experiencing: a) Over-investment in fixed assets b) A liquidity crisis c) Rising profitability d) Cash surplus None 6. Which is a feature of a cash flow forecast? a) Revenue trends only b) Opening and closing balances c) Balance sheet details d) Dividend records None 7. Which of the following is NOT a cause of cash flow problems? a) Overtrading b) Supply chain disruptions c) Strong liquidity position d) Poor credit control None 8. Debt factoring is used to: a) Increase profit margins b) Sell debts to generate immediate cash c) Eliminate fixed costs d) Delay supplier payments None 9. Too much idle cash in a business can lead to: a) Insolvency b) Reduced investment opportunities c) Improved liquidity crisis d) Credit control issues None 10. Seasonal businesses like tourism often suffer cash flow problems because of: a) Consistent sales throughout the year b) Poor credit terms c) Off-season demand fluctuations d) Strong customer loyalty None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
