Question

If disbursements are greater than receipts in anytime period, the entrepreneur must either borrow funds or have cash in a bank account to cover the higher disbursement. This is known as_________?

Answer 1

Cash Accounting

Step-by-step explanation:

This is a type of accounting principle where receipts are entered during the transaction period they are paid, and disbursement are also entered during the periods they were made out.

Cash Accounting are commonly used by entrepreneurs because of it's simplicity, as it easily shows the financial position of the business.