Cindy is concerned because during the past four months her company has experienced difficulty in paying its bills on time. She knows if this continues, the firm will have difficulties in accomplishing its goals. Cindy is concerned with:
A) asset disbursement.
B) cash flow.
C) profit and loss.
D) inventory valuation.

Question

Quizplus · Accepted Answer

Cindy's concern about the company's ability to pay its bills on time indicates a problem with cash flow, which refers to the inflow and outflow of cash in a business. This is different from asset disbursement (how assets are distributed) and inventory valuation (how inventory is valued), which may impact cash flow but are not the specific issue Cindy is worried about. Profit and loss may also be affected by cash flow issues, but again, it is not the specific concern mentioned by Cindy.

Cindy Is Concerned Because During the Past Four Months Her