What does startup cash flow track and why is it important?

What does startup cash flow track and why is it important?

• A. Cash flow focuses only on profits at year end.
• B. Cash flow for startup tracks inflows and outflows over time; it matters because insufficient cash can kill operations even if profitability exists.
• C. Cash flow is the same as net income.
• D. Cash flow concerns only cash on hand, not timing.

Answer: (B)