________ measures a company's liquidity and its ability to pay its bills and other financial obligations on time by tracking the flow of cash into and out of the business over a period of time.

Question

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Cash flow measures a company's ability to generate cash to meet its financial obligations. By tracking cash inflows and outflows over a period of time, companies can determine their liquidity, identify potential cash flow problems, and plan for future needs. Forecasting and cash on hand are related concepts, but they do not provide a complete picture of a company's financial health like cash flow does.

________ Measures a Company's Liquidity and Its Ability to Pay