Bailey 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. What is Bailey concerned with?
A) asset disbursement
B) cash flow
C) profit and loss
D) inventory valuation

Question

Quizplus · Accepted Answer

Cash flow is simply the difference between cash flowing in and the cash flowing out of a business. If a firm is strapped for cash, it has difficulty purchasing and paying for needed inventory, supplies, and labor that ultimately help increase revenues.

Bailey Is Concerned Because During the Past Four Months Her