If cash has decreased from $10,000 to $8000 on the balance sheet, it means the company is doing poorly.

Question

Quizplus · Accepted Answer

The decrease in cash alone does not necessarily indicate whether a company is doing poorly or not. There could be various reasons for the decrease, such as investing in new projects or paying off debts. Other financial metrics and information would need to be examined to determine the overall financial health of the company.

If Cash Has Decreased from $10,000 to $8000 on the Balance