owner of a small business expressed surprise that the firm's cash balance had decreased during the month even though there was
owner of a small business expressed surprise that the firm's cash balance had decreased during the month even though there was
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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After examining the financial statements, the owner of a small business expressed surprise that the firm's cash balance had decreased during the month even though there was substantial net income. Do you think this owner is right to expect cash to increase because of a substantial net income? Why or why not?
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