Instability to remain cash solvent is the primary cause of business failure for real estate developers.
举一反三
- Real estate development is first and foremost a cash flow business.
- Successful real estate developers can become enormously wealthy due to the large sums of money being transacted and the value of the assets they control.
- Which of the following will cause a change in the owners' equity of a business? A: Purchase of equipment with cash B: Payment of the liability with cash C: Investment of cash in the business by the owner D: Sale of equipment for cash at cost
- Which of the following errors would cause a trial balance not to balance? A: An error in the addition in the cash book B: Failure to record a transaction at all C: Cost of a motor vehicle debited to motor expenses account. The cash entry was correctly made D: Goods taken by the proprietor of a business recorded by debiting purchases and crediting drawings account
- Real estate development is the process an entity makes improvements to real property.