ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monthly salary
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tips and commissions
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Rent for the month
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Cash in checking account
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Detailed explanation-1: -Examples of cash outflow include money spent on fixed assets, salaries, payment made to suppliers, loans taken and interest paid on them, wages, transport costs, and insurance dividends that require you to pay.
Detailed explanation-2: -Types of cash outflow Payments made to clear borrowing such as bank loans. Money used to purchase any fixed assets. Dividends paid out to any shareholders. Salaries and wages paid to employees.
Detailed explanation-3: -Rent Payments A business that leases property should include the actual rental payments each month in the “Rent Expense” line of the cash flow statement. Rent or lease payments are a significant part of the cash outlay of the business, so this expense is typically illustrated on a line of its own.
Detailed explanation-4: -“Cash flow” refers to the money that moves both in and out of your business each month. It’s one of the strongest indicators of the financial health of your business.