Because Firms Are Unable to Match Cash Inflows to Outflows

question 134

True/False

Because firms are unable to match cash inflows to outflows with certainty, most of them need current liabilities that more than cover outflows for current assets.

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Definitions:

Consent

Agreement or permission given for something to happen or be done, often after consideration and understanding of implications.

Despondent

A state of feeling profound hopelessness, dejection, or despair.

Psychological Issues

Mental health challenges that affect mood, thinking, and behavior.

Coping

The use of strategies to manage stressful or difficult situations, emotions, and thoughts in an attempt to maintain psychological well-being.