What is the sum of cash that flows into a business over time referred to as?

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Prepare for the GCSE Business Exam with targeted flashcards and multiple choice questions. Get hints and explanations for each question. Excel in your exam!

The sum of cash that flows into a business over time is referred to as cumulative cash flow. This term specifically encompasses the total inflow of cash after accounting for all cash receipts from various sources, such as sales revenues or investments. It is crucial for businesses to track cumulative cash flow to understand their overall financial health, as it reflects the total liquidity available to them.

Cumulative cash flow provides insights into how successfully a business is operating and managing its cash. Constant monitoring can help identify trends, make informed decisions, and plan for future expenditures or investments.

The other terms present in the options don't accurately represent the total cash inflows over time. "Inflow" generally refers to cash coming into the business at a specific moment, rather than the accumulated total over time. "Trade Credit" pertains to credit extended by suppliers allowing businesses to purchase goods or services and pay for them later, and "Stocks" relates to goods or inventory that a business holds for sale, which is not directly about cash flow. Hence, the specific nature of cumulative cash flow makes it the most appropriate answer in this context.

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