3.5 Importance of cash - Word Drop

Cash is the money an enterprise has ______ to spend now. It is a ______ asset, kept in hand or at the bank. Profit is what is left when ______ are subtracted from revenue. The two are not the same, because profit only becomes cash once the customer has ______. A business that sells on credit can be profitable and still run short of cash.

Cash is needed to pay wages and rent as they fall due. If cash runs low, a business may be charged expensive ______ for paying lenders or suppliers late. It may lose ______ that refuse to sell to it. A poor ______ also makes borrowing more expensive.

A lack of cash may force a business to borrow more, cut costs or sell ______. Being unable to pay what it owes is known as ______, which can lead to closure. The business may be forced to stop ______.