Asked by Rachelle Abalos on Jul 05, 2024
Verified
A negative cumulative cash surplus indicates a borrowing need by the firm.
Negative Cumulative Cash Surplus
A financial situation where the cumulative cash flows from a project or business are negative, indicating a deficit.
Borrowing Need
The necessity for an individual or organization to raise funds through loans or debt issuance to finance its operations or investments.
- Become acquainted with the fundamental aspects and crucial importance of cash budgeting in finance management.
- Recognize different forms of short-term financing and their implications for financial planning.
Verified Answer
JK
Justin KobashigawaJul 07, 2024
Final Answer :
True
Explanation :
A negative cumulative cash surplus indicates that the firm's outflows exceed its inflows, suggesting the need to borrow funds to cover the shortfall.
Learning Objectives
- Become acquainted with the fundamental aspects and crucial importance of cash budgeting in finance management.
- Recognize different forms of short-term financing and their implications for financial planning.
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