Which term describes money coming into the business to cover day-to-day outgoings?

• A. Cashflow
• B. Overdraft
• C. Short-Term Loan
• D. Hire Purchase

Answer: (A)

Cash flow is about the money moving through a business, and it shows whether there is enough cash to cover daily expenses. When money comes in—such as from sales receipts or other inflows—it helps pay the day-to-day outgoings like wages, suppliers, and bills. If these inflows are steady and larger than the outflows, the business has positive cash flow and can comfortably cover its everyday costs. The other terms refer to sources of finance or credit rather than the ongoing movement of cash: an overdraft is a borrowing facility to spend beyond the balance, a short-term loan is a lump sum borrowed for a short period, and hire purchase is paying for an asset over time. So the term that best fits “money coming into the business to cover day-to-day outgoings” is cash flow.