What is the simple meaning of cash flow?
Answer and explanation
Correct answer: Money coming into and going out of a business
Cash flow means the movement of cash into and out of a business during a period. Cash may come from sales, loans, or owner contributions, while it may go out for purchases, wages, rent, utilities, and other payments. Thus, option A is correct. Decoration, product colour, and customer age are not meanings of cash flow, although some related business activities may require payment.
Frequently asked questions
What is the correct answer to this question?
Money coming into and going out of a business
Why is this the correct answer?
Cash flow means the movement of cash into and out of a business during a period. Cash may come from sales, loans, or owner contributions, while it may go out for purchases, wages, rent, utilities, and other payments. Thus, option A is correct. Decoration, product colour, and customer age are not meanings of cash flow, although some related business activities may require payment.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.
