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Cambridge IGCSE Business Studies practice

What is the primary purpose of cash flow forecasting?

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At a glance

MCQ

Type

cambridge_mcq

Style

Topic

Cash-flow forecasting and working capital

Exam-style question

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What is the primary purpose of cash flow forecasting?.

  1. A.To predict future sales
  2. B.To manage cash inflows and outflows
  3. C.To determine profit margins
  4. D.To set pricing strategies

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Paper 1 structured question: Cash-flow forecasting and working capital

Paper 1Short Answer and Data Response1 marks

Description

Cash Flow Challenges

The business has a cash flow forecast showing a negative balance next month due to slow customer payments.

  1. a

    State one reason why cash flow forecasting is important for this business.

    Aim for approximately 1 distinct marking point.

    [1]