When an entity does not have enough cash to meet its financial obligations as they fall due it is said to be
A) liquid.
B) insolvent.
C) dissolved.
D) wound up.
Correct Answer:
Verified
Q7: How do entities ensure that customers are
Q8: Net working capital is:
A)cash minus current liabilities
B)current
Q9: Forms of funding include
A)spontaneous.
B)temporary.
C)permanent.
D)all of the options
Q10: If a company becomes insolvent the penalty
Q11: A change in the debtor's turnover period
Q13: Spontaneous sources of funds:
A)are generally free of
Q14: The cost of holding cash is:
A)the opportunity
Q15: Examples of cash outflows from an entity
Q16: Temporary assets should be financed with:
A)temporary,permanent or
Q17: The most important source of spontaneous short-term
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