What problem may occur if cash flow is ignored?
Answer and explanation
Correct answer: लाभ होने पर भी भुगतान करने में कठिनाई
Accounting profit may include credit sales or income that has not yet been collected, while wages, rent and suppliers may require immediate cash. Thus a business can appear profitable but still face a payment shortage if cash inflows and outflows are poorly timed. Monitoring cash flow helps plan liquidity; it does not double customers or remove expenses.
Frequently asked questions
What is the correct answer to this question?
लाभ होने पर भी भुगतान करने में कठिनाई
Why is this the correct answer?
Accounting profit may include credit sales or income that has not yet been collected, while wages, rent and suppliers may require immediate cash. Thus a business can appear profitable but still face a payment shortage if cash inflows and outflows are poorly timed. Monitoring cash flow helps plan liquidity; it does not double customers or remove expenses.
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.
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