question archive The end-of-year parties at Yearling, Inc

The end-of-year parties at Yearling, Inc

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The end-of-year parties at Yearling, Inc., are known for their extravagance. Management provides the best food and entertainment to thank the employees for their hard work.  During the planning for this year’s bash, a disagreement broke out between the treasurer’s staff and the controller’s staff. The treasurer’s staff contended that the firm was running low on cash and might have trouble paying its bills over the coming months; they requested that cuts be made to the budget for the party. The controller’s staff believed that any cuts were unwarranted, as the firm continued to be very profitable. Can both sides be correct?  Explain your answer.

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