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Revenue from customers is the only way to bring operating cash into the firm.

A. True
B. False

1 Answer

5 votes

Final answer:

False. Revenue from customers is not the only way to bring operating cash into the firm. Other sources of operating cash include investment income, loans, and equity financing.

Step-by-step explanation:

False

Total revenue is the income a firm generates from selling its products, but it is not the only way to bring operating cash into the firm. Other sources of operating cash include investment income, loans, and equity financing. For example, a firm can generate cash by earning interest on investments, taking out a loan from a bank, or attracting investors who provide capital in exchange for ownership stakes.

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