Why does customer credit become a crucial determinant of a business' cash flow?
Why does customer credit become a crucial determinant of a business' cash flow?
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Answer)
The money received from the customers will be the major portion of total revenue that an organisation receives. Hence, customer credit become a crucial determinant of a business cash flow because based on such receipt the cash payments will depend. Hence customer credit should be given on such a way that it doesn't have impact on cash outflows which may lead to liquidity and also solvency crisis.
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Why does customer credit become a crucial determinant of a
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