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.
A)accounting
B)exchange rate
C)undercapitalization
D)cash flow

Question

Quizplus · Accepted Answer

The fact that Oh! Canada's cash expenditures have been exceeding cash receipts indicates a cash flow problem. This means that the company is not generating enough cash to cover its expenses, which could eventually cause financial distress if not addressed.

Murray Is the Manager of Oh! Canada Sporting Goods