Task 26 general knowledge manage your business cash

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Task 26: General knowledge: Manage your business cash flow (3 Mark) Read the following statements and write if you agree or disagree with the statements. Your analysis must be supported by argument. 1. The purpose of cash flow planning is to ensure that the cash balance is enough to meet current and future financial requirements. 2. When preparing a cash flow budget you will need to: Managing Finance, Assessment No. 1 Page 34 v1.1, Last updated on 08/09/2014
T-1.8.1 B C D
__________________________________________________________________________ 3. The cash flow equation is as follows.
4. The sales forecast is not important in the preparation of the cash flow budget.
5. In a retail business the largest cash outflow is generally the cost of goods to be sold?
6. After the financial plan is developed and implemented, it is important to communicate and distribute it to the relevant people to satisfy the legal requirements. List some examples of relevant people. Explain why it is critical.
7. “It is critical to obtain accountant/financial planner’s advice to profitably operate and extend the business in accordance with the business plan” - Explain
Managing Finance, Assessment No. 1 Page 35 v1.1, Last updated on 08/09/2014
T-1.8.1 Task 27: Petty Cash (2 Mark) Required: Prepare the Pretty Cash Book for the month of January by: 1. Recording the establishment of the petty cash float in the Petty Cash Book 2. Recording the payment vouchers in the Petty Cash Book 3. Balancing the Petty Cash Book on the dates indicated 4. Recording the reimbursement cheques in the Petty Cash Book Managing Finance, Assessment No. 1 Page 36 v1.1, Last updated on 08/09/2014
T-1.8.1 Managing Finance, Assessment No. 1 Page 37 v1.1, Last updated on 08/09/2014
T-1.8.1 Managing Finance, Assessment No.1 Page 38 v1.1, Last updated on 08/09/2014

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