Asked by Delaney Bacher on Apr 28, 2024
Verified
In Scenario 8-1, if Dea does not solve her cash-flow problems shortly, ______.
A) she will not make a profit
B) sales will fall
C) expenses will fall
D) she may become insolvent
Insolvent
The state of being unable to pay off debts as they come due, having liabilities exceed assets.
- Learn the effects of cash flow control on ensuring a business's continuance.
Verified Answer
TM
Thurman MermanMay 02, 2024
Final Answer :
D
Explanation :
Dea's cash-flow problems indicate she might not have enough cash to meet her financial obligations, leading to insolvency if not resolved. Profitability, sales, and expenses are not directly mentioned as issues in the scenario.
Learning Objectives
- Learn the effects of cash flow control on ensuring a business's continuance.