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| You are in: Rescue & Recovery > Insolvency Tests > Cashflow Test The Cashflow TestThe cashflow test is very subjective. Generally, the directors or partners should have a good understanding as to the company's cashflows. Legally, they are required to have such an understanding. If any director or partner is in any doubt as to the cashflows of the business - he should take immediate steps to establish the position. An example of the cashflow test is illustrated below :
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