A retail firm commonly has a positive cash flow in its early years;therefore,drawing accounts in this time period are unnecessary.

Question

Quizplus · Accepted Answer

While it is true that a retail firm may have a positive cash flow in its early years, drawing accounts may still be necessary for various reasons such as obtaining financing, managing inventory, or paying taxes. Additionally, it is important to consider the long-term financial health of the business and plan for potential changes in cash flow.

A Retail Firm Commonly Has a Positive Cash Flow in Its