Snowy Mountain Ski Lodge's cash budget for the month of March 2019 shows a negative amount. Due to the fact that the months of January and February were quite lucrative and showed positive amounts, the finance manager will not borrow any money in the short term to cover for March's deficit.

Question

Quizplus · Accepted Answer

The statement suggests that Snowy Mountain Ski Lodge is not planning to borrow any money to cover the deficit, which is false. It is likely that they will need to borrow money to cover the negative balance in March, even if previous months were profitable.

Snowy Mountain Ski Lodge's Cash Budget for the Month of March