1) When preparing cash flow forecasts, a treasury professional takes which step?

a. Generate a pro forma cash position

b. Sum available balances in the company's bank accounts

c. Match current assets to current liabilities

d. Adjust available balances by the day's anticipated cash inflows and outflows

2) A daily forecast is performed in a worksheet and takes a half hour to produce. If it is inaccurate 10% of the time, what would be a reason to change this process?

a. This level of Inaccuracy creates a large risk of breaching a covenant.

b. The firm has excess liquidity on many occasions.

c. The firm should never be forecasting in a worksheet and this is reason enough to invest in a more sophisticated tool.

d. This level of inaccuracy is quite high and an investment in more sophisticated tools would be a best practice.