If the initial cash budget indicates a cash deficiency, the company must go out of business.

Question

Quizplus · Accepted Answer

If the initial cash budget indicates a cash deficiency, it means that the company will not have enough cash to fund its operations and may face financial difficulties. However, there are several options the company can explore to address the cash shortfall, such as raising additional capital, reducing expenses, or increasing revenues. Going out of business is not the only solution, though it may be a possibility if the cash deficit is severe and sustained over a prolonged period.

If the Initial Cash Budget Indicates a Cash Deficiency, the Company