Basics of Accounting › Elements of Accounting › Question #24242
MCQ Single Best Answer Easy

QWhich of the following is most important to the daily operations of a business?

ID: #24242 Elements of Accounting 44 views
Question Info
#24242Q ID
EasyDifficulty
Elements of AccountingTopic
Start Quiz on This Topic
 Your Answer

Choose the Best Option

Click any option to instantly check if you're correct.

  • A Assets ✔ ✖
  • B Retained Earnings ✔ ✖
  • C Cash ✔ ✖
Correct Answer: Option C

Explanation

The correct answer is:

C. Cash ✅

👉 Explanation:

  • Cash is the most critical for the day-to-day operations of any business.

    • It is needed to pay employees, suppliers, utilities, and other expenses.

    • Even if a business is profitable on paper, without cash it cannot survive.

  • Assets are important, but not all assets are liquid (e.g., machinery, land).

  • Retained Earnings represent accumulated profits but are not immediately available in cash form.

⚡ So, cash flow is the lifeblood of business operations.

 Continue Practice
Previous Question Next Question
 Share

Share This Question

Challenge a friend or share with your study group.

 More from This Topic

Related MCQ Questions

An account receivable is: We would like to make a member of a class visible in all subclasses regardless of what package they are in. Wh Which keyword can protect a class in a package from accessibility by the classes outside the package ? Which one of the following items is not found on a Balance Sheet? Is LIFO/FIFO a method of: Which would you find on an Income Statement? A prepaid expense is: When people speak about the bottom line, they are referring to: Which of the following keywords are used to control access to a class member? Which of the following is a basic accounting equation: