If trading brings in more money than flows out of a business, it will have a cash (missing word), which means its bank balance will grow larger
Question
If trading brings in more money than flows out of a business, it will have a cash (missing word), which means its bank balance will grow larger.
Solution
The missing word in your sentence is "surplus."
When a business engages in trading activities that generate more income than expenses, it results in a cash surplus. This surplus indicates that the business is effectively earning more than it is spending, contributing positively to its cash flow. Such a scenario allows the bank balance to grow larger, reflecting the financial health of the business over time. A cash surplus is vital for a business as it provides resources that can be reinvested into operations, used for expansion, or allocated towards paying down debt. Understanding cash flow dynamics is crucial for maintaining the sustainability and growth of a business in a competitive market.
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