If cash available plus net cash receipts minus disbursements is negative, then borrowing is necessary.

Name: If cash available plus net cash receipts minus disbursements is negative, then borrowing is necessary.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the total cash available plus net cash receipts minus disbursements is negative, it means that the company is spending more than they are earning. In order to cover the deficit, the company will need to borrow money.

If Cash Available Plus Net Cash Receipts Minus Disbursements Is