Question detail
SolarSprout serves health-conscious consumers while cutting delivery times; the case evidence includes cash inflow of ?10,531, sales of 581 units, and a 18% change in costs or demand. Which option best applies Distinguish cash from profit?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Cash flow
Question
- A. Use distinguish, from, profit, cash to judge average order value, employees impact, and the business objective in Cash flow forecasting and interpretation.
- B. Give only a definition of Cash flow without using the case evidence.
- C. Treat efficiency and productivity as identical and ignore the effect on employees.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use distinguish, from, profit, cash to judge average order value, employees impact, and the business objective in Cash flow forecasting and interpretation.
Explanation
This is the best-supported choice because Use distinguish, from, profit, cash to judge average order value, employees impact, and the business objective in Cash flow forecasting and interpretation. The case evidence gives ?12,031, 581 units, and 18%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse efficiency and productivity, miss the employees, or ignore the business objective.
Common mistake
Cash flow forecasting and interpretation common mistake 1
Giving a vague answer instead of directly addressing: Distinguish cash from profit..
Answer by clearly explaining how to distinguish cash from profit..
Related flashcards
Flashcard 1 of 5
Related practice questions
Question 1 of 5
Choose an answer, get feedback, then move sideways through the set.