BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revenue
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Costs
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Detailed explanation-1: -Cash flow from financing activities (CFF) measures the movement of cash between a firm and its owners, investors, and creditors. This report shows the net flow of funds used to run the company including debt, equity, and dividends.
Detailed explanation-2: -Cash inflow is the money going into a business which could be from sales, investments or financing. It’s the opposite of cash outflow, which is the money leaving the business. A company’s ability to create value for shareholders is determined by its ability to generate positive cash flows.
Detailed explanation-3: -If you allow your clients to buy goods on credit, you should see your firm’s cash sales increase over the long term. However, selling goods on credit will cause your firm’s cash flow to drop.
Detailed explanation-4: -Credit sales do not generate immediate cash inflow. There’s no cash flow until the customers’ receivables are actually collected. There’s a cash flow lag from credit sales.