Question

TP8.

LO 7.5If management is being evaluated on their ability to manage a budget, what can they do to increase cash flow?

Answer 1

Answer and explanation:

Cash flow is the movement of cash into or out of an account, a business or an investment. When cash inflows exceed outflows it is considered to be good financial health. In the case a company is rated according to its ability to manage a budget, the firm must try to realize their transactions as they happen, avoiding to generate accounts receivables and needless debts.