If a firm shows a profit on the quarterly income statement, then
A)there will be no need for additional financing
B)the firm may need additional financing
C)the firm will increase its cash balance
D)all these may be correct

Question

Quizplus · Accepted Answer

If a firm shows a profit on the quarterly income statement, it means that the firm has earned more revenue than it has incurred expenses. This does not necessarily mean that the firm will not need additional financing, as the firm may have other expenses or obligations that require additional funding. Additionally, the firm may choose to use the profit to increase its cash balance or to invest in new projects, which may also require additional financing.

If a Firm Shows a Profit on the Quarterly Income