There are three principal sources of cash to repay a loan.These are cash flows generated from sales or income,funds generated from the liquidation of assets,and,funds raised by selling debt or equity securities.

Question

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The statement is true, as cash flows from sales or income, funds from the liquidation of assets, and funds raised from selling debt or equity securities are the primary sources of cash that can be used to repay a loan.

There Are Three Principal Sources of Cash to Repay a Loan.These