Each of the following causes a cash flow problem except
A) a large proportion of credit sales.
B) embezzlement of company funds.
C) unexpected slow selling seasons.
D) slow-paying customers.
E) customers who pay early.

Question

Quizplus · Accepted Answer

Customers who pay early would not cause a cash flow problem as it would result in early receipt of cash, which can be used to meet immediate cash requirements. The other options - A) a large proportion of credit sales, B) embezzlement of company funds, C) unexpected slow-selling seasons and D) slow-paying customers all have the potential to cause cash flow problems for a business.

Each of the Following Causes a Cash Flow Problem Except