Sales, receivables, and inventory form the basis of cash flow.

Name: Sales, receivables, and inventory form the basis of cash flow.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sales generate revenue, which can then convert into cash. Receivables represent cash owed to a company by credit customers, which can also be converted into cash. Inventory represents goods that can be sold for cash, and the sale of inventory can generate cash flow.

Sales, Receivables, and Inventory Form the Basis of Cash Flow