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

Answer:

Cash Accounting

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.