7. managing cash flow involves making sure that sufficient payments are received from the customer in time so that a. you hold a reserve of funds instead of paying bills. b. you have enough money to cover the costs of performing the project. c. deposits can be made in several different accounts. d. payroll can be paid and suppliers are delayed indefinitely.

Question

21-11-2022
Business

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7. managing cash flow involves making sure that sufficient payments are received from the customer in time so that a. you hold a reserve of funds instead of paying bills. b. you have enough money to cover the costs of performing the project. c. deposits can be made in several different accounts. d. payroll can be paid and suppliers are delayed indefinitely.

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alifaijal77 alifaijal77 · Answer 1 · 2022-11-29T12:03:48+01:00

Managing cash flow involves making sure that sufficient payments are received from the customer in time so that you have enough money to cover the costs of performing the project. Therefore option B is correct.

What is Cash Flow?

The net amount of cash and cash equivalents coming into and going out of a business is referred to as cash flow. Money spent and money received reflect inflows and outflows, respectively.

The quantity of money that enters and leaves a business is known as its cash flow. Businesses receive revenue from sales and spend money on costs. Additionally, they could earn money via interest, investments, royalties, and licensing deals. They might even sell goods on credit with the expectation of getting paid at a later time.

One of the most crucial goals of financial reporting is to evaluate the size, timeliness, and unpredictability of cash flows as well as their sources and destinations. It is crucial for determining the liquidity, adaptability, and general financial success of an organization.

To learn more about Cash Flow follow the link.

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