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Subjects · Leaving Cert Business

Leaving Cert Business: Cash flow

How often Cash flow comes up on the Business papers, every year it was asked, and questions to try.

HL Asked on 3 of the last 10 Higher Level papers, most recently in 2024.

OL Asked on 5 of the last 10 Ordinary Level papers, most recently in 2026.

June 2027 is the first exam on the new Business course. These come from the 2016–2026 papers, so read them as a guide.

Cash flow, Higher Level(7 marks)

Quick ones on Cash flow.

(a)The closing balance in a cash-flow forecast becomes the next month's…
  1. Net cash flow
  2. Opening balance
  3. Total receipts
(b)Depreciation is left out of a cash-flow forecast because…
  1. It is paid only once
  2. It is a type of income
  3. No cash leaves the business
(c)Opening cash is €2,000, receipts are €15,000 and payments are €18,500. Closing cash is…
  1. (€1,500), a deficit
  2. €35,500
  3. €1,500, a surplus
Show the answers

(a) Opening balance

(b) No cash leaves the business

(c) (€1,500), a deficit

Your turn: Higher Level questions on Cash flow.

Higher Level

Asked on 3 of the last 10 Higher Level papers, most recently in 2024.

Every paper, year by year

YearWhere it came up
2026Not asked
2025Not asked
2024Section 3 Q6
2023Not asked
2022Not asked
2021Not asked
2019Not asked
2018Not asked
2017Section 1 Q5
2016Section 2 ABQ

Links open the State Examinations Commission’s paper for that year.

More Cash flow questions

Cash flow, 3 marks

A forecast shows a deficit caused by buying equipment outright. A suitable response is to…

  1. Pay its suppliers earlier to win cash discounts
  2. Give customers longer to pay their bills
  3. Spread the cost through leasing or a medium-term loan
Show the answer

Spread the cost through leasing or a medium-term loan

Spreading a large payment over time matches the cost to the years the equipment is used and avoids a cash shortage.

Cash flow, 2 marks

A profitable firm can still run out of cash mainly because…

  1. Cash includes all of its future sales
  2. Sales on credit are counted before the cash arrives
  3. Profit and cash are always the same amount
Show the answer

Sales on credit are counted before the cash arrives

Profit counts sales when made; cash counts money when received. Slow payers and big purchases can leave a profitable firm short of cash.

Ordinary Level

Asked on 5 of the last 10 Ordinary Level papers, most recently in 2026.

Every paper, year by year

YearWhere it came up
2026Section 2 Q6
2025Section 2 Q6, Section 1 Q10
2024Not asked
2023Section 1 Q14
2022Not asked
2021Section 2 Q7
2019Not asked
2018Not asked
2017Section 2 Q5
2016Not asked

Links open the State Examinations Commission’s paper for that year.

More Cash flow questions

Cash flow, 2 marks

A cash flow forecast is…

  1. A record of the profit or loss the business made over the last year
  2. A list of the firm's shareholders and how many shares each one owns
  3. A plan of the cash a business expects to receive and pay out in future months
Show the answer

A plan of the cash a business expects to receive and pay out in future months

It is usually drawn up month by month. It shows receipts, payments, net cash and the opening and closing cash for each month.

Cash flow, 2 marks

In a cash flow forecast, net cash is…

  1. Total payments minus opening cash
  2. Total receipts minus total payments
  3. Opening cash plus total receipts
Show the answer

Total receipts minus total payments

If receipts are 20,000 euro and payments are 17,000 euro, net cash is 3,000 euro. A minus figure, shown in brackets, is a deficit.

Cash flow, 2 marks

In a cash flow forecast, closing cash is…

  1. Opening cash plus net cash
  2. Net cash minus total receipts
  3. Total receipts plus total payments
Show the answer

Opening cash plus net cash

Start with the cash at the beginning of the month and add the net cash for the month. The answer is the cash left at the end.

Other Business topics

All of Leaving Cert Business