Murray is the manager of Oh! Canada Sporting Goods.He is concerned that his cash expenditures have been exceeding his cash receipts for the last six months.Oh! Canada is suffering from a(n)________ problem.

Question

Quizplus · Accepted Answer

The given scenario suggests that the outflow of cash is higher than the inflow, which indicates a cash flow problem. Option A (accounting) refers to the process of maintaining financial records and is not applicable in this scenario. Option B (undercapitalization) refers to the lack of necessary funds for normal business operations and is not evident from the given information. Option D (exchange rate) refers to the value of one currency compared to another and is not relevant to the scenario. Therefore, option C (cash flow) is the best choice.

Murray Is the Manager of Oh! Canada Sporting Goods