Question

Small businesses that are just getting off the ground often have problems with the difference between cash coming into the business and cash going out of the business. For example, if the company allows far too lenient credit sales terms, customers do not pay on time, which could cause cash to come in too slowly. That's why the __________ is a key financial statement of any business.

Answer 1

Answer: cash flow

Explanation:

Cash flow refers to the net amount of cash and cash equivalents which is being transferred into and out of a business.

The cash flow is an important financial statement of any business. It's vital for all businesses to keep a watch on their cash flows. This is vital in knowing if the business is making a profit or loss.