Cash, Sales and Purchases

Question 1

Cash is the liquid assets of the enterprise.
It is mainly generated by what?

Answer 1

It is mainly generated by sales

Question 2

Cash is the liquid assets of the enterprise.
It is mainly generated by sales and is used to do what?

Answer 2

It is mainly generated by sales and is used to make purchases

Question 3

Cash is the liquid assets of the enterprise.
It is mainly generated by sales and is used to make purchases in order for what?

Answer 3

It is mainly generated by sales and is used to make purchases in order for the business to operate

Question 4

Liquid assets:
Cash is the money that an enterprise can access easily to pay its short-term liabilities.
What may liquid assets consist of?

Answer 4

Liquid assets may consist of:
1) Notes and coins in the till
2) Products that can be sold easily
3) Invoices (debtors) expected to be paid within a few days
4) Money in the enterprise’s bank account - its bank balance

Question 5

Liquid assets:
Cash is the money that an enterprise can access easily to pay its short-term liabilities.
Liquid assets may consist of:
1) Notes and coins in the till
2) Products that can be sold easily
3) Invoices (debtors) expected to be paid within a few days
4) Money in the enterprise’s bank account - its bank balance. What may this include?

Answer 5

This may include an overdraft and loans

Question 6

The importance of liquid assets:

Answer 6

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