Q: Which of the following is most important to the daily operations of a business?
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A
Assets
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B
Retained Earnings
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C
Cash
C
Answer:
C
Explanation:
The correct answer is:
C. Cash ✅
👉 Explanation:
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Cash is the most critical for the day-to-day operations of any business.
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It is needed to pay employees, suppliers, utilities, and other expenses.
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Even if a business is profitable on paper, without cash it cannot survive.
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Assets are important, but not all assets are liquid (e.g., machinery, land).
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Retained Earnings represent accumulated profits but are not immediately available in cash form.
⚡ So, cash flow is the lifeblood of business operations.
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