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If an enterprise has high income but cash is not available on time, what problem may arise?

Answer and explanation

Correct answer: Cash-flow problem

Recorded income or sales does not always mean that cash has already been collected. Customers may owe money, or receipts may arrive after bills are due. Without timely cash, the enterprise may struggle to pay suppliers, workers, rent, or utilities even when accounts show income. This timing mismatch is a cash-flow problem.

Related tags

Cash-FlowWorking-CapitalConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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