Under capitalization of a business entity causes a. A situation when long term assets are financed form short term receivables b. A situation when current assets are financed from long term capital c. A situation when long term assets are financed from short term financial resources d. A situation when the respective business entity is spending
Under capitalization of a business entity causes a. A situation when long term assets are financed form short term receivables b. A situation when current assets are financed from long term capital c. A situation when long term assets are financed from short term financial resources d. A situation when the respective business entity is spending
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 2MCQ
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Under capitalization of a business entity causes
a. A situation when long term assets are financed form short term receivables
b. A situation when current assets are financed from long term capital
c. A situation when long term assets are financed from short term financial resources
d. A situation when the respective business entity is spending more capital than it's able to hain
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