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Card 1 of 21

Why must a business have cash available, even if it expects to make a profit?

A

Profit pays bills when they fall due; future cash cannot pay suppliers, employees or lenders.

B

Cash pays bills when they fall due; future profit cannot pay suppliers, employees or lenders.

C

Revenue pays bills when they fall due; future profit cannot pay suppliers, employees or lenders.

D

Assets pay bills when they fall due; future profit cannot pay suppliers, employees or lenders.

Card 1 of 21

6.2 Cash flow Flashcards

  1. GCSE
  2. /Business
  3. /6.2 Cash flow

21 flashcards on AQA GCSE Business 6.2 Cash flow: the key terms, formulae and case studies you need to recall for Paper 1 and Paper 2.

Flashcards