as long as sales revenues exceed all costs over part of an accounting period, a firm will avoid any cash shortage.
2007-07-24 03:53:22 · 3 answers · asked by dos_1995 1 in Business & Finance ➔ Other - Business & Finance
False - if not collecting the cash from the sales revenue, the firm will not have the cash to pay expenses.
2007-07-24 04:00:15 · answer #1 · answered by mindcrime828 7 · 0⤊ 0⤋
FALSE. Booked revenue is different than collected revenue. If the money aint in the bank, it doesnt matter if your sales team booked 12 gazillion dollars over expenses. Also, you may need to order for a big customer and you dont have payment in advance. This is being undercapitalized and is the single biggest reason for business failure.
2007-07-24 11:00:52 · answer #2 · answered by Go2Guy4U 1 · 0⤊ 0⤋
no. CASH shortage may not be avoidable as some customers on credit terms do not pay when goods are delivered. they pay post 30/60/90 days.
2007-07-24 11:00:06 · answer #3 · answered by Jayne 2 · 0⤊ 0⤋