Financing requirement is the financing gap minus the liquid assets.

Question

Quizplus · Accepted Answer

Financing requirement is the amount of funds required by a company to meet its operating expenses and growth needs, which includes both the financing gap (difference between projected cash inflows and outflows) and the liquid assets (cash and marketable securities) available to the company. Therefore, financing requirement is not equal to the financing gap minus the liquid assets.

Financing Requirement Is the Financing Gap Minus the Liquid Assets