Each of the following causes a cash flow problem EXCEPT which one?
A) slow-paying customers
B) a large proportion of credit sales
C) customers who pay early
D) unexpected slow selling seasons

Question

Quizplus · Accepted Answer

Customers who pay early do not cause a cash flow problem as they provide cash sooner than expected. Slow-paying customers and a large proportion of credit sales delay receipt of cash, leading to a cash flow problem. Unexpected slow selling seasons can also cause a cash flow problem as revenues are lower than expected.

Each of the Following Causes a Cash Flow Problem EXCEPT