A Business That Is Profitable and Liquid Will Have More

question 149

True/False

A business that is profitable and liquid will have more accounts with credit balances than with debit balances.

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Definitions:

Cash-Out Situation

A scenario where an investor or business needs to liquidate assets or securities to cover liabilities or other cash needs.

Collection Period

The amount of time it takes for a business to receive payments owed by its customers.

Cash Disbursements

Financial payments made by a business, including expenses, creditor payments, and inventory purchases.

Seasonal Merchandise

Products that are particularly popular or in demand during specific seasons or periods of the year.