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Cash flow
Cash flow in AQA GCSE Business 8132 focuses on how real firms make decisions in the finance part of the course. Students should connect key terms to business context, use evidence from case studies, and explain the likely effect on costs, revenue, profit, cash flow, customers, employees, owners, and other stakeholders. Strong revision separates similar concepts, weighs advantages against disadvantages, and uses figures where calculations or financial evidence are relevant. Exam answers should move beyond definitions by applying the idea to a specific business objective and reaching a justified judgement.
5
Objectives
25
Flashcards
25
Questions
90 min
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Syllabus checklist
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5 objective pages available
Cash flow forecasting and interpretation4 objectives
- Explain consequences of cash flow problems and effects of positive cash flow.
- Explain how and why cash flow forecasts are constructed.
- Complete and interpret sections of a cash flow forecast, including cash inflows, cash outflows, net cash flow, opening balance and closing balance.
- Distinguish cash from profit.
Solving cash flow problems1 objectives
- Evaluate possible solutions to cash flow problems, including rescheduling payments, using overdrafts, reducing cash outflow, increasing cash inflow and finding new sources of finance.
Key terms
Exam tips
- Cash flow forecasting and interpretation exam tip 1: Use precise subject-specific vocabulary when you explain how to explain consequences of cash flow problems and effects of positive cash flow..
- Cash flow forecasting and interpretation exam tip 1: Use precise subject-specific vocabulary when you explain how to explain how and why cash flow forecasts are constructed..
Common mistakes
- Cash flow forecasting and interpretation common mistake 1: Answer by clearly explaining how to explain consequences of cash flow problems and effects of positive cash flow..
- Cash flow forecasting and interpretation common mistake 1: Answer by clearly explaining how to explain how and why cash flow forecasts are constructed..
Practice preview
- MetroMove serves premium buyers while launching a product; the case evidence includes labour productivity of ?3,198, sales of 748 units, and a 37% change in costs or demand. Which option best applies Explain consequences of cash flow problems and effects of positive cash flow?
- BrightBake serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?6,379, sales of 454 units, and a 20% change in costs or demand. Which option best applies Explain consequences of cash flow problems and effects of positive cash flow?
- Harbour Hire serves commuters while opening a second outlet; the case evidence includes net profit margin of ?7,754, sales of 619 units, and a 23% change in costs or demand. Which option best applies Explain consequences of cash flow problems and effects of positive cash flow?
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