answersLogoWhite

0

Rapidly expanding sales will require a buildup in assets to support the growth. In particular, more and more of the increase in current assets will be permanent in nature. A nonliquidating aggregate stock of current assets will be necessary to allow for floor displays, multiple items for selection, and other purposes. All of these "asset" investments can drain the cash resources of the firm.

User Avatar

Wiki User

15y ago

What else can I help you with?

Continue Learning about Accounting

Explain how rapidly expanding sales can drain the cash recourses of a firm?

A firm's sales may expand as a result of increase in orders, which requires the firm to increase its inventory by purchasing raw material whose payments must be made prior to cash collection from its customers. Thus, the firm has to use either its retained earnings or take on debt to finance the expansion which may result to a negative cash flow


Why use pins in ATM?

In case you lose your card, they can't drain your accounts.


Who said Surround yourself with assets not liabilities?

The phrase "Surround yourself with assets, not liabilities" is often attributed to Robert Kiyosaki, the author of the book "Rich Dad Poor Dad." Kiyosaki emphasizes the importance of building a network of supportive and successful individuals who can contribute positively to your life and financial well-being, rather than those who drain your resources or hinder your growth. This concept encourages individuals to choose relationships and partnerships that foster personal and financial development.


What is the definition of tax?

noun noun: tax; plural noun: taxes1. a compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.synonyms: duty, tariff, excise, customs, dues; More levy, toll, impost, tithe, charge, fee"they have to pay tax on the interest"antonyms: rebate2. a strain or heavy demand."a heavy tax on the reader's attention"synonyms: burden, load, weight, demand, strain, pressure, stress, drain, imposition "a heavy tax on one's attention"verbverb: tax; 3rd person present: taxes; past tense: taxed; past participle: taxed; gerund or present participle: taxing1. impose a tax on (someone or something)."hardware and software is taxed at 7.5 percent"synonyms: charge (duty on), tithe; formalmulct "they tax foreign companies more harshly"


Related Questions

What is meant by drain on resources?

Building a new parliament building may be a necessity but it is a serious drain on the country's financial resources.


Explain how rapidly expanding sales can drain the cash recourses of a firm?

A firm's sales may expand as a result of increase in orders, which requires the firm to increase its inventory by purchasing raw material whose payments must be made prior to cash collection from its customers. Thus, the firm has to use either its retained earnings or take on debt to finance the expansion which may result to a negative cash flow


What are narrow streams of water that break through sandbars and drain rapidly back to sea?

These are called rip currents


Front load washer drain size?

The outlet pipe needs to be a minimum of two inches and then expanding to the four inch main line


Why is the colosseum is called wonder?

The Colosseum is called a wonder because of its age, size, and its engineering feats such as the ability to flood it and then rapidly drain it, the elevators, the various cells and cages and the massive storage areas which were all underground.The Colosseum is called a wonder because of its age, size, and its engineering feats such as the ability to flood it and then rapidly drain it, the elevators, the various cells and cages and the massive storage areas which were all underground.The Colosseum is called a wonder because of its age, size, and its engineering feats such as the ability to flood it and then rapidly drain it, the elevators, the various cells and cages and the massive storage areas which were all underground.The Colosseum is called a wonder because of its age, size, and its engineering feats such as the ability to flood it and then rapidly drain it, the elevators, the various cells and cages and the massive storage areas which were all underground.The Colosseum is called a wonder because of its age, size, and its engineering feats such as the ability to flood it and then rapidly drain it, the elevators, the various cells and cages and the massive storage areas which were all underground.The Colosseum is called a wonder because of its age, size, and its engineering feats such as the ability to flood it and then rapidly drain it, the elevators, the various cells and cages and the massive storage areas which were all underground.The Colosseum is called a wonder because of its age, size, and its engineering feats such as the ability to flood it and then rapidly drain it, the elevators, the various cells and cages and the massive storage areas which were all underground.The Colosseum is called a wonder because of its age, size, and its engineering feats such as the ability to flood it and then rapidly drain it, the elevators, the various cells and cages and the massive storage areas which were all underground.The Colosseum is called a wonder because of its age, size, and its engineering feats such as the ability to flood it and then rapidly drain it, the elevators, the various cells and cages and the massive storage areas which were all underground.


Spain's northern colonies in the seventeenth century are best described as?

a drain on Spanish resources.


What is another word for exhaust?

Exhaust means to drain a person of their mental or physical resources or use up resources completely. Another word for exhaust is fatigue. Other words for exhaust include drain, overtire, and deplete.


What is the perspective most likely to see the brain drain as a symptom of the unequal distribution of world resources?

A global justice perspective is most likely to see brain drain as a symptom of the unequal distribution of world resources. This perspective focuses on issues of fairness and equity in the distribution of resources such as education and economic opportunities, and argues that brain drain exacerbates these inequalities by siphoning skilled workers from developing countries to wealthier ones.


What words are spelled with AI?

maintain explain train brain drain main pain rain vain


What causes a bath tub drain to make popping sounds?

The sound is from the pipes expanding as the water goes down. They will expand and condense to accommodate incoming and outgoing water.


What Microsoft Office can do for your business that you didn't know it could do?

It can be a tremendous drain on your computing resources due to its bulk and inefficient use of space. It can drain your bank account when Microsoft releases an upgrade.


How can I effectively use a pressure plunger to unclog a drain?

To effectively use a pressure plunger to unclog a drain, follow these steps: Fill the sink or tub with enough water to cover the plunger's cup. Place the plunger over the drain and ensure a tight seal. Push and pull the plunger rapidly to create pressure and dislodge the clog. Repeat the process several times until the drain is clear. Flush the drain with hot water to remove any remaining debris.