A financially solid firm is most apt to have a quarterly cash shortfall when it encounters a:
A)period of relatively constant sales.
B)major fixed asset expenditure.
C)period of rising interest rates.
D)period of declining interest rates.
E)period of increased cash collections.

Question

Quizplus · Accepted Answer

A major fixed asset expenditure can result in a large outflow of cash, which may result in a temporary cash shortfall, despite the firm being financially solid.

A Financially Solid Firm Is Most Apt to Have a Quarterly