Answered

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Which of the following tips can hurt your cash flow?

A. Increase your sales.
B. Pay your bills early.
C. Keep a cash reserve.
D. Offer credit only to low-risk borrowers.

Please select the best answer from the choices provided.

Sagot :

GinnyAnswer

Final answer:

Paying bills early can hurt cash flow, while increasing sales and offering credit only to low-risk borrowers can help cash flow.


Explanation:

Paying your bills early can hurt your cash flow as it decreases the amount of cash you have on hand for other expenses. By paying bills early, you might face a cash flow crunch, especially if unexpected expenses arise.

On the other hand, increasing your sales can help to improve cash flow as more revenue is generated. This can provide a positive impact on the cash flow of a business by bringing in more money.

Offering credit only to low-risk borrowers can also hurt cash flow if these customers default on payments, leading to a decrease in cash flow from unpaid invoices.


Learn more about Cash flow management here:

https://brainly.com/question/50954226


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