As long as sales revenues exceed all costs over part of an accounting period,a firm will avoid any cash shortage.

Name: As long as sales revenues exceed all costs over part of an accounting period,a firm will avoid any cash shortage.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sales revenues exceeding costs may result in profits on paper, but if cash inflows do not match or exceed outflows, the firm can still experience a cash shortage. It is important to properly manage cash flow to avoid liquidity issues.

As Long as Sales Revenues Exceed All Costs Over Part