What term refers to the regular influx of cash that a business receives?

Study for the NCEA Level 1 Business Studies Test. Engage with interactive questions, complete with hints and detailed explanations. Prepare effectively for your exam!

The term that refers to the regular influx of cash that a business receives is cash flow. Cash flow is a crucial concept in business as it represents the total amount of money being transferred into and out of a business. Positive cash flow indicates that a business is earning more cash than it is spending, which is essential for its operations, sustainability, and growth. Cash flow includes regular income from sales, investments, and other business activities, making it fundamental for day-to-day operations as well as long-term financial planning.

Understanding cash flow is vital for businesses to ensure they can meet their financial obligations, such as paying suppliers, employees, and other operational costs. It is also used to assess the financial health of a business, making it a key indicator that investors and managers often analyze. Other options represent related concepts but do not encapsulate the full scope of cash inflows and outflows like cash flow does.

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