Question: I need clarity on the plug when it comes to finance. Our questions will ask us if a cash or a liability plug is needed.
I need clarity on the "plug" when it comes to finance. Our questions will ask us if a cash or a liability plug is needed. If assets are equal to 125 and liabiltiies and equity are equal to 100 what would be used? Would you say this is a liability plug because that is what needs to be added? I have seen mixed answers of these questions on here. Some say yes liability, some say it would be cash because you would be taking from the cash side to the liability side...so yes I am very confused!
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