A Firm Can Never Go Out of Business as Long

question 81

True/False

A firm can never go out of business as long as it makes a profit, even if it manages its cash poorly.

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Definitions:

Credit

A bookkeeping entry that increases the value of liabilities or equity accounts, or decreases the value of an asset or expense account.

Journal

A detailed record where all financial transactions of a business are initially recorded.

Chronological Record

A record of events or transactions organized in the order they occurred over time.

Transactions

The exchange or transfer of goods, services, or funds between two or more parties.